KRS 186A.220: Requirements for motor vehicle dealer upon receipt of motor vehicle or

all-terrain vehicle.

(1) Except as otherwise provided in this chapter, when any motor vehicle dealer

licensed in this state buys or accepts a motor vehicle or all-terrain vehicle as defined

in KRS 189.010 in trade, which has been previously registered or titled for use in

this or another state, and which the dealer holds for resale, the dealer shall not be

required to obtain a certificate of title for it, but shall, with in fifteen (15) days after

acquiring such vehicle, notify the county clerk of the assignment of the motor

vehicle to his or her dealership and pay the required transferor fee.

(2) Upon purchasing a motor vehicle or all -terrain vehicle, or accepting it in t rade, the

dealer shall obtain from the transferor, properly executed, all documents required

by KRS 186A.215, to include the odometer disclosure statement thereon, together

with a properly assigned certificate of title.

(3) The dealer shall execute the app lication for assignment upon documents designated

by the Department of Vehicle Regulation, to the county clerk of the county in

which the dealer maintains his or her principal place of business. The clerk shall

enter the assignment into AVIS.

(4) The deale r shall retain the properly assigned certificate of title received from the

transferor, and may make any reassignments on the title until the forms for dealer

assignment on the certificate of title are exhausted. The Department of Vehicle

Regulation may, i f it deems it warranted, provide a special document to allow for

additional dealer assignments without requiring system generated documents.

(5) (a) When a dealer assigns the vehicle to a purchaser for use, the dealer shall

deliver the properly assigned ce rtificate of title, and other documents if

appropriate, to the purchaser, who shall make application for registration and

a certificate of title.

(b) The dealer may, with the consent of the purchaser, deliver the assigned

certificate of title, and other ap propriate documents of a new or used vehicle,

directly to the county clerk, and on behalf of the purchaser, make application

for registration and a certificate of title. In so doing, the dealer shall require

from the purchaser proof of insurance as mandated by KRS 304.39-080 before

delivering possession of the vehicle.

(c) Notwithstanding the provisions of KRS 186.020, 186A.065, 186A.095,

186A.215, and 186A.300, if a dealer elects to deliver the title documents to

the county clerk and has not received a cle ar certificate of title from a prior

owner, the dealer shall retain the documents in his or her possession until the

certificate of title is obtained.

(d) When a dealer assigns a vehicle to a purchaser for use under paragraph (a) of

this subsection, the tr ansfer and delivery of the vehicle is effective

immediately upon the delivery of all necessary legal documents, or copies

thereof, including proof of insurance as mandated by KRS 304.39-080.

(6) The department may make available, upon proper application from a licensed motor

vehicle dealer, electronic means by which the dealer can interface directly with

AVIS and the department. If the department grants this access, all fees currently

required for the issuance of a certificate of title shall continue to be charged and

remitted to the appropriate parties as provided by statute.

(7) The Department of Vehicle Regulation shall ensure that AVIS is capable of

accepting instructions from the county clerk that a certificate of title shall not be

produced under a dealer registration situation.