Bill Text: NY S06409 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to the release of security interests in certain motor vehicles including automobiles having an unladen weight of ten thousand pounds or less and motorcycles.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO TRANSPORTATION [S06409 Detail]
Download: New_York-2017-S06409-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6409 2017-2018 Regular Sessions IN SENATE May 17, 2017 ___________ Introduced by Sen. ROBACH -- (at request of the Department of Motor Vehicles) -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation AN ACT to amend the vehicle and traffic law, in relation to the release of security interests in certain motor vehicles The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 2121 of the vehicle and traffic law is amended by 2 adding a new subdivision (c) to read as follows: 3 (c) (1) For automobiles having an unladen weight of ten thousand 4 pounds or less, and motorcycles, a security interest that has not been 5 released as provided in subdivisions (a) and (b) of this section shall 6 be considered satisfied, a release of security interest shall not be 7 required, and the security interest shall be automatically released by 8 the commissioner after ten years from the date the security interest was 9 recorded in the records of the department. Upon such automatic release 10 of a security interest, the commissioner may record that the security 11 interest is deemed satisfied, remove the security interest from its 12 files, and upon submission of any required forms and fees, issue a 13 certificate of title that reflects full satisfaction and release of the 14 security interest. Provided however, that the provisions of this para- 15 graph shall not apply if, before the date of such automatic release, the 16 holder of the security interest perfects the security interest for a 17 second time in accordance with the provisions of this article. 18 (2) For automobiles having an unladen weight of ten thousand pounds or 19 less, and motorcycles, if a security interest has not been released as 20 provided in subdivisions (a) and (b) of this section, an owner may 21 submit to the commissioner evidence to demonstrate that such security 22 interest has been satisfied, and that the holder of the security inter- 23 est is no longer in business, or that the holder has refused or failed 24 to issue a release within fifteen business days after the holder EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10167-01-7S. 6409 2 1 received a payment in full satisfaction of the security interest. 2 Evidence that a security interest has been satisfied shall include: (i) 3 evidence that an interbank or electronic transfer of funds has been 4 made; or (ii) evidence that a copy of a cashier's check or bank check 5 has been delivered; or (iii) other evidence as determined to be satis- 6 factory by the commissioner; and (iv) if the holder of the security 7 interest is still in business, evidence that the amount delivered to the 8 holder of the security interest is equal to the amount which has been 9 represented to the owner by the holder of the security interest as 10 sufficient to satisfy the lien. Any evidence submitted to the commis- 11 sioner pursuant to this subdivision may, subject to the approval of the 12 commissioner, be submitted in electronic form. If the commissioner finds 13 that the evidence of satisfaction of the security interest, and evidence 14 that the holder of the security interest is no longer in business or has 15 refused or failed to issue a release of the security interest as 16 described above is satisfactory, the commissioner may record that the 17 security interest is satisfied, removed the security interest from its 18 files, and upon submission of any required forms and fees, issue a 19 certificate of title that reflects full satisfaction and release of the 20 security interest. 21 (3) For purposes of this subdivision, "automobile" shall include cars 22 and pick-up trucks, and any other vehicle as set forth in regulations 23 issued by the commissioner. A "car" shall include, but not be limited 24 to, convertibles, coupes, hardtops, hatchbacks, jeeps, mini-cars, 25 sedans, sports cars, sports utility vehicles, and any car type as set 26 forth in the regulations of the commissioner. A "pick-up truck" shall 27 mean a truck with a cargo bed and sidewalls, regardless of seating 28 capacity within the cab, and any truck type as set forth in the regu- 29 lations of the commissioner. 30 (4) The department may issue regulations implementing the provisions 31 of this subdivision, including but not limited to: satisfactory proof 32 of payment in full of the security interest; the particular steps that 33 the owner has made to locate the holder of the security interest; and 34 security interests and entities which may be exempt from the provisions 35 of this subdivision. 36 (5) The provisions of this subdivision shall not apply to liens 37 created or filed pursuant to section one hundred eleven-u of the social 38 services law. 39 § 2. This act shall take effect on the one hundred eightieth day after 40 it shall have become a law, and shall apply to security interests that 41 have not been released, whether recorded on certificates of title or 42 filed with the department of motor vehicles, on or after such date; 43 provided, however, that effective immediately, the addition, amendment 44 and/or repeal of any rule or regulation necessary for the implementation 45 of this act on its effective date is authorized to be made and completed 46 on or before such date.