2004 Minnesota Statutes

     168A.07 Conditional registration. 

    Subdivision 1.    Ownership at issue; certificate withheld 
 or bond filed.  In the event application is made in this state 
 for a certificate of title on a vehicle and the department is 
 not satisfied as to the ownership of the vehicle or the 
 existence of security interests therein, the vehicle may be 
 registered but the department shall either: 

    (1) withhold issuance of a certificate of title until the 
 applicant shall present documents reasonably sufficient to 
 satisfy the department of the applicant's ownership of the 
 vehicle and as to any security interest therein; or 

    (2) as a condition to issuing a certificate of title, 
 require the applicant to file a bond in the form prescribed by 
 the department and executed by the applicant, and either 
 accompanied by the deposit of cash or executed by a surety 
 company authorized to do business in this state, in an amount 
 equal to 1-1/2 times the value of the vehicle as determined by 
 the department.  The bond shall be conditioned to indemnify any 
 prior owner and secured party and any subsequent purchaser of 
 the vehicle or person acquiring any security interest therein, 
 or the successor in interest of any said person, against any 
 expense, loss, or damage, including reasonable attorneys' fees, 
 by reason of the issuance of the certificate of title to the 
 vehicle or on account of any defect in or undisclosed security 
 interest upon the right, title and interest of the applicant in 
 and to the vehicle.  Any such interested person shall have a 
 right of action to recover on such bond for any breach of its 
 conditions, but the aggregate liability of the surety to all 
 such persons shall in no event exceed the amount of the bond.  
 Unless the department has been notified of the pendency of an 
 action to recover on the bond and if all questions as to 
 ownership and outstanding security interests have been resolved 
 to the satisfaction of the department, such bond, and any 
 deposit accompanying it, shall be returned at the end of three 
 years or prior thereto in the event the vehicle is no longer 
 registered in this state and the currently valid certificate of 
 title is surrendered. 

    Subd. 2.    Nontransferable certificate.  In the event 
 the issuance of a certificate of title is withheld in accordance 
 with subdivision 1, or because the applicant is unable to 
 surrender an existing certificate of title to the vehicle issued 
 by another state, the department, upon payment of the same fee 
 as for issuing a certificate of title, may issue to the 
 applicant a nontransferable certificate in form designated by 
 the department certifying that the applicant has applied for a 
 certificate of title; provided that such certificate shall not 
 be issued if the department has reasonable grounds to believe 
 the applicant is not the owner or that the application contains 
 a false or fraudulent statement. 

    HIST: 1971 c 162 s 7; 1978 c 570 s 2