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.