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.
STATE OF NEW YORK
________________________________________________________________________
3903
2019-2020 Regular Sessions
IN ASSEMBLY
January 31, 2019
___________
Introduced by M. of A. DenDEKKER -- 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 § 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.
LBD07841-01-9
