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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4218
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   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
       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    S 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    S 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, AND
   10  EXECUTES A RELEASE OF HIS OR HER SECURITY INTEREST WITHIN  TEN  DAYS  OF
   11  SUCH  ASSIGNMENT.  ANY  person  without  notice  of  the  assignment  is
   12  protected in dealing with the lienholder as the holder of  the  security
   13  interest  and the lienholder remains liable for any obligations as lien-
   14  holder 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.
   19  Upon  the  request  of  the  assignee the commissioner shall request the
   20  owner to deliver to the commissioner the certificate of title.
   21    (C) A LIENHOLDER WHO VIOLATES THE PROVISIONS OF THIS SECTION SHALL PAY
   22  A CIVIL PENALTY NOT TO EXCEED ONE THOUSAND DOLLARS.
   23    S 3. This act shall take effect on the thirtieth day  after  it  shall
   24  have become a law.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07971-01-5