HF 2187

as introduced - 87th Legislature (2011 - 2012) Posted on 02/13/2012 11:48am

A bill for an act
relating to public safety; vehicle titles; clarifying requirements pertaining
to bonds and issuance of title; amending Minnesota Statutes 2010, sections
168A.07, by adding a subdivision; 168A.20, subdivision 5.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 168A.07, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Submission of bond; issuance of title. new text end

new text begin If application is made for a
certificate of title on a vehicle with a model year designated by the manufacturer of more
than five years prior to the year in which the application is made, and the applicant is
unable to establish ownership of the vehicle because one or more existing owners or
lienholders cannot be found, the applicant may submit a bond in the form and amount
prescribed in subdivision 1, clause (2). Upon receipt of the application, fees and taxes,
bond, and a written statement by the applicant that after diligent search the owner or
lienholder cannot be found, the department shall issue a certificate of title to the applicant.
The bond shall be returned to the applicant as provided in subdivision 1, clause (2), or at
an earlier date after the applicant establishes ownership of the vehicle.
new text end

Sec. 2.

Minnesota Statutes 2010, section 168A.20, subdivision 5, is amended to read:

Subd. 5.

Satisfaction of automobile lien seven years old; release.

A security
interest perfected under this chapter may be canceled seven years from the perfection
date for a passenger automobile, as defined in section 168.002, subdivision 24, upon the
request of the owner of the passenger automobile, if the owner has paid the lien in full
and is unable to locate the lienholder to obtain a lien release. At a minimum, the owner
must send a letter to the lienholder by certified mail, return receipt requested, requesting a
lien release. If the owner is unable to obtain a lien release by sending a letter by certified
mail, then the owner must present to the department or its agent the returned letter as
evidence of the attempted contact. This subdivision applies only to vehicle owners who
are individuals new text begin or a dealer holding a vehicle for resale new text end .