Authorizes a motor vehicle dealer who receives a vehicle for resale and satisfies any security interest in such vehicle, but has not received a release of security interest for such vehicle, to apply to the commissioner of motor vehicles for a certificate of title free of liens upon submission of proof that the security interest in the vehicle has been satisfied.
STATE OF NEW YORK
________________________________________________________________________
1346--C
2011-2012 Regular Sessions
IN ASSEMBLY(Prefiled)
January 5, 2011
___________
Introduced by M. of A. GANTT, ESPINAL, BRINDISI -- read once and
referred to the Committee on Transportation -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee -- reported and referred to the Committee on Codes -- again
reported from said committee with amendments, ordered reprinted as
amended and recommitted to said committee -- recommitted to the
Committee on Transportation in accordance with Assembly Rule 3, sec. 2
-- reported and referred to the Committee on Codes -- 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 two weeks prior to submission to the commis-
10 sioner. The commissioner shall, upon receipt of such evidence, a proper
11 application and the appropriate fee pursuant to section twenty-one
12 hundred twenty-five of this article, promptly issue, within no more than
13 fifteen business days of receipt by the department of all required
14 information and fees, either a duplicate certificate without such lien
15 included thereon, or a certificate without such lien included thereon.
16 Evidence that a security interest has been satisfied shall include: (i)
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03368-11-2
A. 1346--C 2
1 evidence that an interbank or electronic transfer of funds has been
2 made; or (ii) evidence that a copy of a cashier's or bank check has been
3 delivered; or (iii) other evidence as determined to be satisfactory by
4 the commissioner; and (iv) evidence that the amount delivered to the
5 lienholder is equal to the amount which has been represented to the
6 dealer by the lienholder as sufficient to satisfy such lien. Such
7 evidence shall be accepted by the commissioner as sufficient. Any
8 evidence submitted to the commissioner pursuant to this subdivision may,
9 subject to approval of the commissioner, be submitted in electronic
10 form. In addition to the penalties imposed by section twenty-one
11 hundred thirty of this article, any dealer who alters or forges evidence
12 of payment, or fails to make a payment, shall be liable to any party for
13 any damages resulting from the issuance of a new certificate by the
14 commissioner, plus attorney's fees and costs incurred in recovering such
15 damages, provided however no subsequent purchaser of a vehicle where the
16 security interest was removed by the commissioner under the provisions
17 of this subdivision shall be liable for any errors in the removal of
18 such security interest, and any dealer who so applied for the removal of
19 such security interest on such vehicle shall indemnify any such purchas-
20 er and lienholder. The commissioner is authorized to adopt and enforce
21 reasonable rules and regulations necessary to carry out the provisions
22 of this subdivision.
23 § 2. This act shall take effect on the one hundred eightieth day after
24 it shall have become a law.
