S T A T E   O F   N E W   Y O R K
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                                  2622

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 21, 2009
                               ___________

Introduced  by M. of A. GANTT -- read once and referred to the Committee
  on Transportation

AN ACT to amend the vehicle and traffic law, in relation to satisfaction
  of a security interest in a motor vehicle by a dealer

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  opening paragraph of section 2121 of the vehicle and
traffic law is designated subdivision (a) and a new subdivision  (b)  is
added to read as follows:
  (B)  A  DEALER WHO RECEIVES A MOTOR VEHICLE FOR THE PURPOSES OF RESALE
AND WHO ARRANGES FOR THE SATISFACTION OF ANY SECURITY INTEREST  IN  SUCH
VEHICLE,  AND  FOR  WHICH  A  RELEASE  OF SECURITY INTEREST HAS NOT BEEN
ISSUED, MAY SUBMIT TO THE COMMISSIONER  SUFFICIENT  EVIDENCE  TO  DEMON-
STRATE  THAT SUCH SECURITY INTEREST HAS BEEN SATISFIED. THE COMMISSIONER
SHALL, UPON RECEIPT OF SUCH  EVIDENCE,  A  PROPER  APPLICATION  AND  THE
APPROPRIATE  FEE  PURSUANT  TO SECTION TWENTY-ONE HUNDRED TWENTY-FIVE OF
THIS ARTICLE, PROMPTLY ISSUE, WITHIN NO MORE THAN FIFTEEN BUSINESS  DAYS
OF  RECEIPT  BY  THE  DEPARTMENT  OF  ALL REQUIRED INFORMATION AND FEES,
EITHER A DUPLICATE CERTIFICATE WITHOUT SUCH LIEN INCLUDED THEREON, OR  A
CERTIFICATE WITHOUT SUCH LIEN INCLUDED THEREON. EVIDENCE THAT A SECURITY
INTEREST  HAS  BEEN  SATISFIED SHALL INCLUDE, BUT NOT BE LIMITED TO: (I)
EVIDENCE THAT AN  INTRABANK  TRANSFER  OF  FUNDS  HAS  BEEN  MADE;  (II)
EVIDENCE  THAT  A COPY OF A CERTIFIED CHECK HAS BEEN DELIVERED; OR (III)
EVIDENCE THAT AN UNCERTIFIED CHECK OR DRAFT ISSUED BY A DEALER  LICENSED
TO  DO BUSINESS IN THIS STATE HAS BEEN DELIVERED. SUCH EVIDENCE SHALL BE
ACCEPTED BY THE COMMISSIONER AS SUFFICIENT.  ANY EVIDENCE  SUBMITTED  TO
THE  COMMISSIONER PURSUANT TO THIS SUBDIVISION MAY BE SUBMITTED IN ELEC-
TRONIC FORM.  IN ADDITION TO THE PENALTIES IMPOSED BY SECTION TWENTY-ONE
HUNDRED THIRTY OF THIS ARTICLE, ANY DEALER WHO ALTERS OR FORGES EVIDENCE
OF PAYMENT SHALL BE LIABLE TO ANY PARTY FOR ANY DAMAGES  RESULTING  FROM
THE  ISSUANCE  OF A NEW CERTIFICATE BY THE COMMISSIONER, PLUS ATTORNEY'S

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06011-01-9
              

A. 2622                             2

FEES AND COSTS INCURRED IN RECOVERING SUCH DAMAGES, PROVIDED HOWEVER  NO
SUBSEQUENT  PURCHASER  OF  A  VEHICLE  WHERE  THE  SECURITY INTEREST WAS
REMOVED BY THE COMMISSIONER UNDER THE  PROVISIONS  OF  THIS  SUBDIVISION
SHALL BE LIABLE FOR ANY ERRORS IN THE REMOVAL OF SUCH SECURITY INTEREST,
AND  ANY DEALER WHO SO APPLIED FOR THE REMOVAL OF SUCH SECURITY INTEREST
ON SUCH VEHICLE SHALL INDEMNIFY ANY SUCH PURCHASER. THE COMMISSIONER  IS
AUTHORIZED  TO ADOPT AND ENFORCE REASONABLE RULES AND REGULATIONS NECES-
SARY TO CARRY OUT THE PROVISIONS OF THIS SUBDIVISION.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.