Bill Text: NY A04218 | 2015-2016 | General Assembly | Amended

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Bill Title: Establishes the "vehicle lienholder accountability act"; requires lienholders to provide notice to the owner of the vehicle when such lienholder assigns his or her security interest and requires such lienholder to execute a release of his or her security interest, within ten days of such assignment.

Spectrum: Moderate Partisan Bill (Democrat 7-1)

Status: (Introduced - Dead) 2016-06-29 - print number 4218a [A04218 Detail]

Download: New_York-2015-A04218-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         4218--A
                               2015-2016 Regular Sessions
                   IN ASSEMBLY
                                    January 29, 2015
                                       ___________
        Introduced  by  M.  of  A. DenDEKKER, MILLER, ABINANTI, WEPRIN -- Multi-
          Sponsored by -- M.  of A. BRENNAN, HOOPER, PERRY, RAIA  --  read  once
          and  referred to the Committee on Transportation -- recommitted to the
          Committee on Transportation in accordance with Assembly Rule 3, sec. 2
          -- 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 establishing
          the "vehicle lienholder accountability act"; to require lienholders to
          provide  notice  to  the  owner  of  the  vehicle when such lienholder
          assigns his or her security interest
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  This  act shall be known and may be cited as the "vehicle
     2  lienholder accountability act".
     3    § 2. Section 2120 of the vehicle and traffic law, as added by  chapter
     4  1134 of the laws of 1971, is amended to read as follows:
     5    § 2120. Assignment  by  lienholder. (a) A lienholder may assign, abso-
     6  lutely or otherwise, his or her security interest in the  vehicle  to  a
     7  person  other than the owner without affecting the interest of the owner
     8  or the validity of the security interest, [but any] provided  that  such
     9  lienholder  notifies  the  owner  of  the vehicle of such assignment, in
    10  writing, and executes a release of his or her security  interest  within
    11  ten days of such assignment. Any person without notice of the assignment
    12  is protected in dealing with the lienholder as the holder of the securi-
    13  ty  interest  and  the  lienholder remains liable for any obligations as
    14  lienholder until the assignee is named as lienholder on the certificate.
    15    (b) The assignee may, but need not to perfect the assignment, have the
    16  certificate of title endorsed or issued with the assignee named as lien-
    17  holder, upon delivering to the commissioner an assignment by  the  lien-
    18  holder named in the certificate in the form the commissioner prescribes.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07971-03-6
        A. 4218--A                          2
     1  Upon  the  request  of  the  assignee the commissioner shall request the
     2  owner to deliver to the commissioner the certificate of title.
     3    (c) A lienholder who violates the provisions of this section shall pay
     4  a civil penalty not to exceed one thousand dollars.
     5    §  3.  This  act shall take effect on the thirtieth day after it shall
     6  have become a law.