N.Y. Vehicle & Traffic Law § 429: Junk and salvage vehicles

§ 429. Junk and salvage vehicles. 1. Requirements upon acquisition of

junk or salvage vehicles. (a) By an insurance company. Whenever an

insurance company acquires a motor vehicle in settlement of a claim for

damage thereto or theft thereof, such company shall deliver a statement

concerning such acquisition to the commissioner as provided in this

section. Such company shall deliver the certificate of title or any

other ownership documents relating to such motor vehicle properly

executed to transfer title from the insured to the company and notices

of release of security interest from any lienholder whose lien has been

satisfied to the commissioner with the required statement of

acquisition.

(b) By a vehicle dismantler. Whenever a person who is engaged in a

business requiring him to be registered as a vehicle dismantler or an

itinerant vehicle collector acquires a motor vehicle which has been sold

or otherwise disposed of as junk or for salvage, such person shall

deliver a statement concerning such acquisition to the commissioner as

provided in this section. Such person shall deliver the certificate of

title or any other ownership documents relating to such motor vehicle

properly executed to transfer title by the transferor to the vehicle

dismantler or itinerant vehicle collector and notices of release of

security interest from any lienholder whose lien has been satisfied to

the commissioner with the required statement of acquisition. However,

the provisions of this subdivision shall not apply to a vehicle which

has been transferred to a vehicle dismantler registered under section

four hundred fifteen-a of this chapter by means of a document issued

pursuant to this section. The commissioner may, by regulation, allow the

requirements of this subdivision with respect to the delivery of

documents to be satisfied by an electronic filing of the necessary

information by or on behalf of the person to whom such requirements

apply.

(c) By other persons. Whenever a person other than a person described

in paragraph (a) or (b) of this subdivision acquires ownership of a

motor vehicle which has been sold or otherwise disposed of as junk or

salvage or which is to be dismantled for use other than as a motor

vehicle, such person shall deliver a statement concerning such

acquisition to the commissioner as provided in this section. Such person

shall deliver the certificate of title and any other ownership documents

relating to such motor vehicle properly executed to transfer title by

the transferor to such person and notices of release of security

interest from any lienholder whose lien has been satisfied to the

commissioner with the required statement of acquisition. However, the

provisions of this subdivision shall not apply to a vehicle which has

been transferred to any such person by means of a document issued

pursuant to this section or to a scrap processor by a person registered

or certified pursuant to section four hundred fifteen-a of this chapter.

(d) A statement of acquisition and all documents required to be

submitted to the commissioner pursuant to this section or regulations

promulgated thereunder must be so submitted within the time specified by

regulation of the commissioner. Any person who, knowingly and willfully,

and with intent to defraud a subsequent purchaser as to the applicable

status of a motor vehicle, makes any false statement on an application

for title or duplicate title for a motor vehicle pursuant to this

section or fails to submit the statement of acquisition and supporting

documentation to the commissioner within the time specified by

regulation shall be subject to a civil penalty of up to two thousand

dollars for each offense found to have been committed. Such penalty may

only be imposed if such person has had the opportunity to be heard

before an officer or employee of the department designated for such

purpose by the commissioner, upon any charge of a violation of this

paragraph or regulations promulgated by the commissioner with respect to

this paragraph.

1-a. Requirements for certain fleet vehicles. (a) Whenever a motor

vehicle titled or registered by a fleet owner becomes a severely damaged

fleet vehicle, prior to the transfer of such vehicle or any major

component part thereof, the fleet owner shall deliver a statement

concerning such occurrence to the commissioner as provided in this

section. Such fleet owner shall deliver the certificate of title in its

name or any other ownership documents relating to such motor vehicle and

notices of release of security interest from any lienholder whose lien

has been satisfied to the commissioner with the required statement

concerning such occurrence. Such a statement shall be subject to all

provisions of law applicable to a statement of acquisition except as may

otherwise be specified by regulation of the commissioner.

(b) For the purposes of this section, a fleet owner shall mean a

person who has twenty-five or more vehicles titled or registered in his

name in this state and who does not have such vehicles insured for

damage or theft by an insurance company duly authorized to transact

business in this state.

(c) For the purposes of this section, a severely damaged fleet vehicle

shall mean a motor vehicle titled or registered in the name of a fleet

owner in this state or in any other state or province of Canada which

has received damage and which has not been placed back in fleet use by

the fleet owner subsequent to receipt of such damage. However, it shall

not include a motor vehicle titled and registered in another state or a

province of Canada if the damage was incurred outside of this state and

the vehicle is sold by the fleet owner outside of this state, or shall

include a motor vehicle which has a fair market value after such damage

of at least sixty percent of the fair market value of an undamaged

similar model vehicle unless such motor vehicle requires the replacement

of the engine in order to be made operable.

(d) If a severely damaged fleet vehicle is sold by a fleet owner in

violation of this section, the purchaser or any subsequent good faith

purchaser, may rescind such sale and recover the price he paid to his

transferor for the vehicle from the fleet owner. Recovery of the

purchase price may be enforced in a civil action to recover damages.

(e) The provisions of this subdivision shall not apply to any vehicle

titled or registered in the name of a public utility subject to the

authority of the public service commission for which such utility has

obtained an exemption in accordance with the following provisions of

this subdivision. In order to obtain such exemption, the utility must

forward to the commissioner a listing, including model year, make and

vehicle identification number of any or all vehicles for which exemption

is requested not more than sixty and not less than thirty days prior to

the date of proposed sale of such vehicle or vehicles. Such listing

shall contain the date, time and place of such proposed sale. Any

vehicle contained on such listing shall be exempt from the provisions of

this subdivision, but such exemption shall be applicable only with

respect to a sale of any such vehicle made upon the date contained on

the listing.

2. Transfer of junk and salvage vehicles. (a) When an insurance

company, vehicle dismantler, fleet owner, or any other person submits a

statement of acquisition for a junk or salvage vehicle or a severely

damaged fleet vehicle, as provided in subdivision one or one-a of this

section, such insurance company, vehicle dismantler, or other person

shall prepare and distribute a statement of acquisition in accordance

with regulations promulgated by the commissioner. A copy of such

statement of acquisition designated by the commissioner shall serve as

proof of ownership for the vehicle and shall provide a method of

transfer of such a vehicle as a junk vehicle and may serve as an

application for title if the vehicle is subsequently rehabilitated or

repaired for the purpose of being operated upon the public highways.

(b) The provisions of section four hundred twenty-one of this chapter

prohibiting the sale of a motor vehicle with a removed, altered or

defaced vehicle identification number plate shall not apply to the sale

of any junk or salvage vehicle or any severely damaged fleet vehicle

from an insurance company, a vehicle dismantler, a local authority,

fleet owner or a dealer registered under section four hundred fifteen of

this chapter provided the proof of ownership for such vehicle consists

of a valid statement of acquisition and such statement of acquisition

which transfers ownership of such vehicle indicates that the vehicle

identification number plate is missing, altered or defaced.

(c) No person shall sell or advertise for sale or solicit a bid for

the purchase of a junk or salvage vehicle without notifying any

prospective purchaser or bidder of the existence or non-existence of any

security interest with respect to such junk or salvage vehicle. If a

security interest exists with respect to such vehicle, the name or names

and address or addresses of the secured party or parties must also be

provided to the prospective purchaser or bidder.

3. Items to be surrendered before intentional destruction of motor

vehicles. A certified scrap processor or registered vehicle dismantler

may crush a motor vehicle still displaying a vehicle identification

number plate. The crushing must be so complete that the vehicle

identification number plate cannot be readily removed. No other person

shall cause or permit a motor vehicle to be scrapped, permanently

dismantled or otherwise intentionally destroyed unless the vehicle

identification number plate of such motor vehicle has been removed

therefrom and either destroyed or delivered to the commissioner together

with all title or any other ownership documents pertaining to such motor

vehicle as provided in this section. If the vehicle identification

number plate is not delivered to the commissioner, a notice indicating

the disposition of such plate must accompany the ownership documents

required to be submitted to the commissioner.

4. Forms and documents. Any forms or documents used in conjunction

with this section shall be in a form prescribed by the commissioner and

shall set forth a complete description of the motor vehicle, the name

and address of the person to whom such motor vehicle was sold or

transferred or from whom such motor vehicle was acquired together with

any other information deemed necessary or desirable by the commissioner

to effectuate the provisions and purposes of this section. Any such

statement, document or item required to be delivered to the commissioner

by any provision of this section shall be deemed to have been so

delivered when it has been either personally delivered or sent by mail

to the office of the commissioner at the address designated by him.

4-a. Fees for statement of acquisition. The statement of acquisition

provided for in this section shall be issued as prescribed by regulation

of the commissioner upon payment of a fee of five dollars for each such

statement. Such fee shall be paid to the commissioner for deposit in the

general fund.

5. Motor vehicle subject to requirements. The provisions of this

section shall apply to all motor vehicles sold, surrendered or otherwise

disposed of, or acquired, or intentionally destroyed, within this state

for which a certificate of title has been issued by the commissioner or

which would be eligible to have such a certificate of title issued.

6. Penalties. A violation of any provision of this section shall be a

misdemeanor.