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
________________________________________________________________________
5132--D
Cal. No. 249
2011-2012 Regular Sessions
IN SENATE
May 3, 2011
___________
Introduced by Sens. LIBOUS, CARLUCCI, LARKIN -- read twice and ordered
printed, and when printed to be committed to the Committee on Trans-
portation -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- recommitted to the
Committee on Transportation in accordance with Senate Rule 6, sec. 8
-- reported favorably from said committee, ordered to first and second
report, ordered to a third reading, passed by Senate and delivered to
the Assembly, recalled, vote reconsidered, restored to third reading,
amended and ordered reprinted, retaining its place in the order of
third reading
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03368-12-2
S. 5132--D 2
1 included thereon, or a certificate without such lien included thereon.
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 or bank check has been
5 delivered; or (iii) other evidence as determined to be satisfactory by
6 the commissioner; and (iv) evidence that the amount delivered to the
7 lienholder is equal to the amount which has been represented to the
8 dealer by the lienholder as sufficient to satisfy such lien. Such
9 evidence shall be accepted by the commissioner as sufficient. Any
10 evidence submitted to the commissioner pursuant to this subdivision may,
11 subject to approval of the commissioner, be submitted in electronic
12 form. In addition to the penalties imposed by section twenty-one
13 hundred thirty of this article, any dealer who alters or forges evidence
14 of payment, or fails to make a payment, shall be liable to any party for
15 any damages resulting from the issuance of a new certificate by the
16 commissioner, plus attorney's fees and costs incurred in recovering such
17 damages, provided however no subsequent purchaser of a vehicle where the
18 security interest was removed by the commissioner under the provisions
19 of this subdivision shall be liable for any errors in the removal of
20 such security interest, and any dealer who so applied for the removal of
21 such security interest on such vehicle shall indemnify any such purchas-
22 er and lienholder. The commissioner is authorized to adopt and enforce
23 reasonable rules and regulations necessary to carry out the provisions
24 of this subdivision.
25 § 2. This act shall take effect on the one hundred eightieth day after
26 it shall have become a law.
