N.Y. Vehicle & Traffic Law § 2115: Transfer by operation of law

§ 2115. Transfer by operation of law. (a) If the interest of an owner

in a vehicle passes to another other than by voluntary transfer, the

transferee shall, except as provided in subdivision (b), promptly mail

or deliver to the commissioner the last certificate of title, if

available, proof of the transfer, and his application for a new

certificate in the form the commissioner prescribes.

(b) If the interest of the owner is terminated or the vehicle is sold

under a security agreement by a lienholder, the transferee shall

promptly mail or deliver to the commissioner the last certificate of

title if available to him, his application for a new certificate in the

form the commissioner prescribes, and an affidavit made by or on behalf

of the lienholder that the vehicle was repossessed and that the interest

of the owner was lawfully terminated or sold pursuant to the terms of

the security agreement. If the lienholder succeeds to the interest of

the owner and holds the vehicle for resale, he need not secure a new

certificate of title but, upon transfer to another person, shall

promptly mail or deliver to the transferee the certificate, if

available, affidavit and other documents required to be sent to the

commissioner by the transferee.

(c) A person holding a certificate of title whose interest in the

vehicle has been extinguished or transferred other than by voluntary

transfer shall mail or deliver the certificate to the commissioner upon

request of the commissioner. The delivery of the certificate pursuant

to the request of the commissioner does not affect the rights of the

person surrendering the certificate, and the action of the commissioner

in issuing a new certificate of title as provided herein is not

conclusive upon the rights of an owner or lienholder named in the old

certificate.