Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                        CHAPTER 148-H.F.No. 931 
           An act relating to motor vehicles; requiring owner to 
          retain certificate of title, rather than secured 
          party; requiring buyer to deliver certificate of title 
          to department of public safety; requiring a form for 
          disclosure of the condition of a vehicle's pollution 
          control equipment on the certificate of title; 
          allowing commissioner of public safety to suspend or 
          revoke certificate of title if owner does not 
          surrender it and vehicle is involuntarily transferred; 
          amending Minnesota Statutes 1988, sections 168A.02, 
          subdivision 1; 168A.04, subdivision 2; 168A.05, 
          subdivision 5, and by adding a subdivision; 168A.06; 
          168A.09; 168A.10; 168A.11, subdivision 1; 168A.12, 
          subdivision 2; 168A.14; 168A.18; 168A.20, subdivision 
          1, and by adding subdivisions; 168A.23, subdivision 1; 
          repealing Minnesota Statutes 1988, sections 168A.26; 
          168A.27; and 168A.28. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 168A.02, 
subdivision 1, is amended to read: 
    Subdivision 1.  Except as provided in section 168A.03, and 
subject to section 168A.26, every owner of a vehicle which is in 
this state and for which no currently effective certificate of 
title has been issued in this state shall make application to 
the department for a certificate of title of the vehicle, 
pursuant to rules adopted by the department under section 
168A.24, subdivision 2, clause 3.  
    Sec. 2.  Minnesota Statutes 1988, section 168A.04, 
subdivision 2, is amended to read: 
    Subd. 2.  If the application refers to a vehicle purchased 
from a dealer it shall contain the name and address of any 
secured party holding a security interest created or reserved at 
the time of the sale and the date of the security agreement and 
be signed by the dealer as well as the owner, and the dealer 
shall promptly within ten days mail or deliver the application 
and appropriate taxes to the department. 
    Sec. 3.  Minnesota Statutes 1988, section 168A.05, 
subdivision 5, is amended to read: 
    Subd. 5.  [ASSIGNMENT AND WARRANTY OF TITLE FORMS.] The 
certificate of title shall contain forms for assignment and 
warranty of title by the owner, and for assignment and warranty 
of title by a dealer, and may shall contain forms for 
applications for a certificate of title by a transferee, and the 
naming of a secured party, and the assignment or release of 
security interests. 
     Sec. 4.  Minnesota Statutes 1988, section 168A.05, is 
amended by adding a subdivision to read: 
    Subd. 5a.  [POLLUTION CONTROL EQUIPMENT DISCLOSURE.] The 
certificate of title shall contain a form for disclosure by the 
transferor of the condition of the vehicle's pollution control 
equipment as required by section 325E.0951.  The disclosure form 
must be as prescribed by the registrar. 
    Sec. 5.  Minnesota Statutes 1988, section 168A.06, is 
amended to read: 
    168A.06 [DELIVERY OF CERTIFICATE.] 
    The certificate of title shall be mailed or delivered to 
the first secured party owner named in it, or if none, to the 
owner.  Secured parties, if any, shall be mailed notification of 
their security interest filed. 
    Sec. 6.  Minnesota Statutes 1988, section 168A.09, is 
amended to read: 
    168A.09 [DUPLICATE CERTIFICATE.] 
    Subdivision 1.  In the event a certificate of title is 
lost, stolen, mutilated, or destroyed or becomes illegible, the 
owner or legal representative of the owner named in the 
certificate, or a secured party noted thereon as shown by the 
records of the department, may make application to the 
department for a duplicate on a form prescribed by the 
department.  The department shall issue a duplicate certificate 
of title if satisfied that the applicant is entitled thereto.  
The duplicate certificate of title shall be plainly marked as a 
duplicate and mailed or delivered to the person who according to 
the records of the department is the holder of the first 
security interest in the vehicle, or if none, to the owner.  The 
department shall indicate in its records that a duplicate has 
been issued.  As a condition to issuing a duplicate certificate 
of title, the department may require a bond from the applicant 
in the manner and form prescribed in section 168A.07, 
subdivision 1, clause (2).  The duplicate certificate of title 
shall contain the legend:  "This duplicate certificate of title 
may be subject to the rights of a person under the original 
certificate."  
    Subd. 2.  The department shall not issue a new certificate 
of title to a transferee upon application made on a duplicate 
until at least 15 days after receipt of the application.  
    Subd. 3.  A person recovering an original certificate of 
title for which a duplicate has been issued shall promptly 
surrender the original certificate to the department.  
    Sec. 7.  Minnesota Statutes 1988, section 168A.10, is 
amended to read: 
    168A.10 [TRANSFER OF INTEREST BY OWNER.] 
    Subdivision 1.  If an owner transfers interest in a vehicle 
other than by the creation of a security interest, the owner 
shall at the time of the delivery of the vehicle execute an 
assignment and warranty of title to the transferee in the space 
provided therefor on the certificate or as the department 
prescribes.  With respect to motor vehicles subject to the 
provisions of section 325E.15, the transferor shall also, in the 
space provided therefor on the certificate or as the department 
prescribes, state the true cumulative mileage registered on the 
odometer or that the actual mileage is unknown if the odometer 
reading is known by the transferor to be different from the true 
mileage.  The transferor shall cause the certificate and 
assignment to be mailed or delivered to the transferee or to the 
department immediately. 
    Subd. 2.  Except as provided in section 168A.11, the 
transferee shall, promptly within ten days after taking delivery 
assignment to the transferee of the vehicle title certificate, 
execute the application for a new certificate of title in the 
space provided therefor on the certificate or as the department 
prescribes, and cause the certificate and application of title 
to be mailed or delivered to the department. 
    Subd. 3.  Upon request of the owner or transferee, a 
secured party in possession of the certificate of title shall, 
either deliver the certificate to the transferee for delivery to 
the department, or upon receipt from the transferee of the 
owner's assignment, the transferee's application for a new 
certificate and the required fee, mail or deliver them to the 
department.  The delivery of the certificate does not affect the 
rights of the secured party under a security agreement. 
    Subd. 4.  If a security interest is reserved or created at 
the time of the transfer, the certificate of title a 
notification of security interest shall be retained by or 
delivered or mailed to the person who becomes the secured party, 
unless a prior secured party is entitled to it, and the parties 
shall comply with the provisions of section 168A.18. 
    Subd. 5.  Except as provided in section 168A.11 and as 
between the parties, a transfer by an owner is not effective 
until the provisions of this section have been complied with; 
however, an owner who has delivered possession of the vehicle to 
the transferee and has complied, or within 48 hours after such 
delivery does comply, with the provisions of this section 
requiring action by the owner is not liable as owner for any 
damages resulting from operation of the vehicle after the 
delivery of the vehicle to the transferee. 
    Subd. 6.  Every owner or transferor of a motor vehicle who 
fails or delays for more than 14 days to file the transfer of 
ownership with the registrar shall pay the registrar a fee of $2.
    Sec. 8.  Minnesota Statutes 1988, section 168A.11, 
subdivision 1, is amended to read: 
    Subdivision 1.  If a dealer buys a vehicle and holds it for 
resale and procures the certificate of title from the owner or 
the secured party within ten days after taking delivery of the 
vehicle, and complies with subdivision 2 hereof, the dealer need 
not apply for a certificate of title, but upon transferring the 
vehicle to another person other than by the creation of a 
security interest shall promptly execute the assignment and 
warranty of title by a dealer, showing the names and addresses 
of the transferee and of any secured party holding a security 
interest created or reserved at the time of the resale, and the 
date of the security agreement in the spaces provided therefor 
on the certificate or as the department prescribes.  With 
respect to motor vehicles subject to the provisions of section 
325E.15, the dealer shall also, in the space provided therefor 
on the certificate or as the department prescribes, state the 
true cumulative mileage registered on the odometer or that the 
exact mileage is unknown if the odometer reading is known by the 
transferor to be different from the true mileage.  The 
transferee shall complete the application for title section on 
the certificate of title.  The dealer shall mail or deliver the 
certificate to the department with the transferee's application 
for a new certificate and appropriate taxes and fees, within ten 
days. 
    Sec. 9.  Minnesota Statutes 1988, section 168A.12, 
subdivision 2, is amended to read: 
    Subd. 2.  If the interest of the owner is terminated or the 
vehicle is sold under a security agreement by a secured party 
named in the certificate of title, the transferee shall promptly 
mail or deliver to the department the last certificate of title, 
if available, an application for a new certificate in the form 
the department prescribes, and an affidavit made by or on behalf 
of the secured party that the interest of the owner was lawfully 
terminated or the vehicle sold pursuant to the terms of the 
security agreement.  If the secured party succeeds to the 
interest of the owner and holds the vehicle for resale, the 
secured party need not secure a new certificate of title 
provided that a notice thereof in form designated by the 
department is mailed or delivered by the secured party to the 
department in duplicate within 48 hours, but upon transfer to 
another person the secured party shall promptly execute 
assignment and warranty of title and mail or deliver to the 
transferee or the department the certificate, if available, the 
affidavit, and other documents required to be sent to the 
department by the transferee.  
    Sec. 10.  Minnesota Statutes 1988, section 168A.14, is 
amended to read: 
    168A.14 [DUTY OF DEPARTMENT TO ISSUE NEW CERTIFICATES AND 
RETAIN SURRENDERED CERTIFICATES.] 
    Subdivision 1.  The department, upon receipt of a properly 
assigned certificate of title, with an application for a new 
certificate of title, the required fee fees and taxes, and any 
other documents required by law, shall issue a new certificate 
of title in the name of the transferee as owner and list any 
secured party named on it and mail or deliver it to the first 
secured party named in it, or if none, to the owner.  The 
secured party or parties shall be issued a notification that the 
security interest has been filed.  
    Subd. 2.  The department, upon receipt of an application 
for a new certificate of title by a transferee other than by 
voluntary transfer, with proof of the transfer, the required fee 
fees and taxes, and any other documents required by law, shall 
issue a new certificate of title in the name of the transferee 
as owner.  If the outstanding certificate of title is not 
delivered to it, the department shall make demand therefor from 
the holder thereof.  
    Subd. 3.  The department shall file and retain for five 
seven years every surrendered certificate of title, the file to 
be maintained so as to permit the tracing of title of the 
vehicle designated therein.  
    Sec. 11.  Minnesota Statutes 1988, section 168A.18, is 
amended to read: 
    168A.18 [DUTIES OF PARTIES WITH RELATION TO SECURITY 
INTEREST.] 
    If an owner creates a security interest in a vehicle: 
    (1) The owner shall immediately execute the application in 
the space provided therefor on the certificate of title, or on a 
separate form the department prescribes, to name the secured 
party on the certificate, showing the name and address of the 
secured party, and cause the certificate, application, and the 
required fee fees and taxes to be delivered to the secured party.
    (2) The secured party shall immediately cause the 
certificate, application, and the required fee fees and taxes to 
be mailed or delivered to the department.  
    (3) Upon request of the owner or A second or subordinate 
secured party, a secured party in possession of the certificate 
of title shall either mail or deliver the certificate to the 
subordinate secured party for delivery to the department, or 
upon receipt from the subordinate secured party of the owner's 
application, and the required fee, mail or deliver them to the 
department with the certificate.  The delivery of the 
certificate does not affect the rights of the first secured 
party under a security agreement.  
    (4) Upon receipt of the certificate of title, application, 
and the required fee fees and taxes, the department shall either 
endorse on the certificate or issue a new certificate containing 
the name and address of the new secured party, and mail or 
deliver the certificate to the first secured party named in it 
owner.  The secured party or parties shall be issued a 
notification that the security interest has been recorded. 
    Sec. 12.  Minnesota Statutes 1988, section 168A.20, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CERTIFICATE WITH LATEST SECURED PARTY.] 
Upon the satisfaction of a security interest in a vehicle for 
which the certificate of title is in the possession of the 
secured party, the secured party shall within 15 days execute a 
release of security interest in the space provided therefor on 
the certificate or as the department prescribes, and mail or 
deliver the certificate and release to the next secured party 
named therein, or if none, to the owner or any person who 
delivers to the secured party an authorization from the owner to 
receive the certificate.  The owner, other than a dealer holding 
the vehicle for resale, shall promptly cause the certificate and 
release, together with the required fee fees and taxes, to be 
mailed or delivered to the department, which shall release the 
secured party's rights on the certificate or issue a new 
certificate. 
    Sec. 13.  Minnesota Statutes 1988, section 168A.20, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [TITLES ISSUED BEFORE JULY 1, 1990.] For titles 
issued to the secured party before July 1, 1990, the secured 
party shall hold the certificate of title until the security 
interest is satisfied. 
    Sec. 14.  Minnesota Statutes 1988, section 168A.20, is 
amended by adding a subdivision to read: 
    Subd. 3.  [CERTIFICATE WITH OWNER.] Upon the satisfaction 
of a security interest in a vehicle for which the certificate of 
title is in the possession of the owner, the secured party shall 
within 15 days execute a release of security interest on the 
form prescribed by the department and mail or deliver the 
notification with release to the owner or any person who 
delivers to the secured party an authorization from the owner to 
receive the release. 
    Sec. 15.  Minnesota Statutes 1988, section 168A.23, 
subdivision 1, is amended to read: 
    Subdivision 1.  The department shall suspend or revoke a 
certificate of title upon notice and reasonable opportunity to 
be heard when authorized by any other provision of law, or if it 
finds: 
    (1) The certificate of title was fraudulently procured or 
erroneously issued; 
    (2) The vehicle has been scrapped, dismantled, or 
destroyed; or 
     (3)  the vehicle has been involuntarily transferred and the 
owner did not surrender the certificate of title. 
     Sec. 16.  [REPEALER.] 
     Minnesota Statutes 1988, sections 168A.26; 168A.27; and 
168A.28, are repealed. 
      Sec. 17.  [EFFECTIVE DATE.] 
    Sections 1 to 16 are effective July 1, 1990, except that 
the registrar of motor vehicles may take action to revise 
certificate of title, assignment and warranty of title, and 
application for title forms and other title documents prior to 
July 1, 1990. 
    Presented to the governor May 15, 1989 
    Signed by the governor May 16, 1989, 6:32 p.m.