Bill Text: NY A01346 | 2011-2012 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Authorizes a motor vehicle dealer who receives a vehicle for resale and satisfies any security interest in such vehicle, but has not received a release of security interest for such vehicle, to apply to the commissioner of motor vehicles for a certificate of title free of liens upon submission of proof that the security interest in the vehicle has been satisfied.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2012-12-17 - signed chap.493 [A01346 Detail]

Download: New_York-2011-A01346-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        1346--A
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 5, 2011
                                      ___________
       Introduced  by M. of A. GANTT -- read once and referred to the Committee
         on Transportation  --  committee  discharged,  bill  amended,  ordered
         reprinted as amended and recommitted to said committee
       AN ACT to amend the vehicle and traffic law, in relation to satisfaction
         of a security interest in a motor vehicle by a dealer
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The opening paragraph of section 2121 of  the  vehicle  and
    2  traffic  law  is designated subdivision (a) and a new subdivision (b) is
    3  added to read as follows:
    4    (B) A DEALER WHO RECEIVES A MOTOR VEHICLE FOR THE PURPOSES  OF  RESALE
    5  AND  WHO  ARRANGES FOR THE SATISFACTION OF ANY SECURITY INTEREST IN SUCH
    6  VEHICLE, AND FOR WHICH A RELEASE  OF  SECURITY  INTEREST  HAS  NOT  BEEN
    7  ISSUED,  MAY  SUBMIT  TO  THE COMMISSIONER SUFFICIENT EVIDENCE TO DEMON-
    8  STRATE THAT SUCH SECURITY INTEREST HAS BEEN SATISFIED AND SHALL  PROVIDE
    9  NOTICE  TO  THE  LIENHOLDER THAT SUCH EVIDENCE HAS BEEN SUBMITTED TO THE
   10  COMMISSIONER. THE COMMISSIONER SHALL, UPON RECEIPT OF SUCH  EVIDENCE,  A
   11  PROPER   APPLICATION   AND  THE  APPROPRIATE  FEE  PURSUANT  TO  SECTION
   12  TWENTY-ONE HUNDRED TWENTY-FIVE OF THIS ARTICLE, PROMPTLY  ISSUE,  WITHIN
   13  NO  MORE  THAN FIFTEEN BUSINESS DAYS OF RECEIPT BY THE DEPARTMENT OF ALL
   14  REQUIRED INFORMATION AND FEES, EITHER A  DUPLICATE  CERTIFICATE  WITHOUT
   15  SUCH  LIEN INCLUDED THEREON, OR A CERTIFICATE WITHOUT SUCH LIEN INCLUDED
   16  THEREON. EVIDENCE THAT A SECURITY  INTEREST  HAS  BEEN  SATISFIED  SHALL
   17  INCLUDE,  BUT NOT BE LIMITED TO: (I) EVIDENCE THAT AN INTRABANK TRANSFER
   18  OF FUNDS HAS BEEN MADE; (II) EVIDENCE THAT A COPY OF A  CERTIFIED  CHECK
   19  HAS BEEN DELIVERED; OR (III) EVIDENCE THAT AN UNCERTIFIED CHECK OR DRAFT
   20  ISSUED BY A DEALER LICENSED TO DO BUSINESS IN THIS STATE HAS BEEN DELIV-
   21  ERED. SUCH EVIDENCE SHALL BE ACCEPTED BY THE COMMISSIONER AS SUFFICIENT.
   22  ANY  EVIDENCE SUBMITTED TO THE COMMISSIONER PURSUANT TO THIS SUBDIVISION
   23  MAY BE SUBMITTED IN ELECTRONIC FORM.    IN  ADDITION  TO  THE  PENALTIES
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03368-04-1
       A. 1346--A                          2
    1  IMPOSED BY SECTION TWENTY-ONE HUNDRED THIRTY OF THIS ARTICLE, ANY DEALER
    2  WHO  ALTERS  OR  FORGES EVIDENCE OF PAYMENT SHALL BE LIABLE TO ANY PARTY
    3  FOR ANY DAMAGES RESULTING FROM THE ISSUANCE OF A NEW CERTIFICATE BY  THE
    4  COMMISSIONER, PLUS ATTORNEY'S FEES AND COSTS INCURRED IN RECOVERING SUCH
    5  DAMAGES, PROVIDED HOWEVER NO SUBSEQUENT PURCHASER OF A VEHICLE WHERE THE
    6  SECURITY  INTEREST  WAS REMOVED BY THE COMMISSIONER UNDER THE PROVISIONS
    7  OF THIS SUBDIVISION SHALL BE LIABLE FOR ANY ERRORS  IN  THE  REMOVAL  OF
    8  SUCH SECURITY INTEREST, AND ANY DEALER WHO SO APPLIED FOR THE REMOVAL OF
    9  SUCH SECURITY INTEREST ON SUCH VEHICLE SHALL INDEMNIFY ANY SUCH PURCHAS-
   10  ER  AND  LIENHOLDER. THE COMMISSIONER IS AUTHORIZED TO ADOPT AND ENFORCE
   11  REASONABLE RULES AND REGULATIONS NECESSARY TO CARRY OUT  THE  PROVISIONS
   12  OF THIS SUBDIVISION.
   13    S 2. This act shall take effect on the one hundred eightieth day after
   14  it shall have become a law.
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