Bill Text: NY S06538 | 2015-2016 | General Assembly | Amended
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: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-06-09 - PRINT NUMBER 6538A [S06538 Detail]
Download: New_York-2015-S06538-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6538--A IN SENATE January 22, 2016 ___________ Introduced by Sen. AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted 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. 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 § 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. LBD07971-02-6