A BILL TO BE ENTITLED AN ACT TO ALLOW THE DIVISION OF MOTOR VEHICLES TO ISSUE A SALVAGE CERTIFICATE OF TITLE TO AN INSURANCE COMPANY OR USED CAR DEALER IN CERTAIN SITUATIONS WHERE THE INSURANCE COMPANY OR USED CAR DEALER IS UNABLE TO OBTAIN THE ORIGINAL CERTIFICATE OF TITLE FROM THE OWNER OF THE MOTOR VEHICLE.
Amends GS 20-109.1 (Surrender of titles to salvage vehicles), providing that if a salvage vehicle owner fails to assign and deliver the vehicle's certificate of title to the insurer within 30 days of payment of the claim, the insurer, without surrendering the certificate of title, can request that the Division of Motor Vehicles (DMV) send a form on order to transfer the title of the vehicle to the person who buys the vehicle. Sets out the processes and procedures regarding obtaining and using the form. Issuance of this form extinguishes all existing liens on the vehicle.
Sets out the processes and procedures for a vehicle that the insurer did not take ownership of and directed the used motor vehicle dealer to release to the owner or lienholder and is subsequently abandoned by the owner or lienholder. Includes provisions which establish the notices and waiting periods required before a vehicle can be considered abandoned and assigned to the used motor vehicle dealer. Requires the issuance and utilization of the above form if the vehicle is to be bought from the dealer.
Amends GS 20-72(b), establishing that the provisions of this subsection do not apply to transfers pursuant to GS 20-109.1(b)(2) or (e1) and that transfers pursuant to GS 20-109.1(b)(2) or GS 20-109.1(e1) do not require the salvage title to be forwarded to the DMV.
Amends GS 20-75 (When transferee is dealer or insurance company), providing that transfers pursuant to GS 20-109.1(b)(2) or GS 20-109.1(e1) do not require the salvage title to be forwarded to the DMV.
Amends GS 20-78(a), establishing that after receipt of an application for transfer and payment of all proper fees, but no properly endorsed certificate of title has been received, the DMV will issue a salvage certificate of title, pursuant to GS 20-109.1(b)(2) or GS 20-109.1(e1).
Amends GS 20-85(a)(10), providing that a $15 fee is assessed for a salvage certificate of title by an insurer or by a used motor vehicle dealer, pursuant to GS 20-109.1(e1).
Amends GS 105-187.6(a)(1), providing that the tax imposed by this Article does not apply when a certificate of title is issued as the result of a transfer of a motor vehicle to a used motor vehicle dealer under GS 20-109.1 because the vehicle is a salvage vehicle that was abandoned.
Effective October 1, 2013.
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