| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Jun 08, 2010 |
reported and committed to codes |
| Jun 02, 2010 |
print number 7831a |
| Jun 02, 2010 |
amend and recommit to transportation |
| May 14, 2010 |
referred to transportation |
Senate Bill S7831
2009-2010 Legislative Session
Sponsored By
(D) 15th Senate District
Archive: Last Bill Status - In Senate Committee Codes Committee
Actions
Votes
Bill Amendments
2009-S7831 - Details
- Current Committee:
- Senate Codes
- Law Section:
- Vehicle and Traffic Law
- Laws Affected:
- Amd §2120, V & T L
- Versions Introduced in 2011-2012 Legislative Session:
-
S3302
2009-S7831 - Summary
Establishes the "vehicle lienholder accountability act"; requires lienholders to provide notice to the owner of the vehicle when such lienholder assigns his or her security interest and requires such lienholder to execute a release of his or her security interest, within ten days of such assignment.
2009-S7831 - Sponsor Memo
BILL NUMBER: S7831
TITLE OF BILL : An act to amend the vehicle and traffic law, in
relation to establishing the "vehicle lienholder accountability act";
to require lienholders to provide notice to the owner of the vehicle
when such lienholder assigns his or her security interest
PURPOSE : To require a vehicle lienholder to provide the vehicle's
owner with a timely lien release when such lien is assigned so that
the vehicle's owner can obtain a clear title when the lien is
satisfied.
SUMMARY OF SPECIFIC PROVISIONS : Subdivision (a) of section 2120 of
the vehicle and traffic law is amended to require vehicle lienholders
to provide the vehicle's owner with a release of such lien within ten
days of the lien being assigned, and subdivision (c) is added to
section 2120 to impose a civil fine not to exceed one thousand dollars
for failure to comply.
JUSTIFICATION : Vehicle lienholders often assign their security
interest without generating a lien release to the owner, and the new
lienholder often fails to properly register the lien with Department
of Motor Vehicles in order to avoid the fees due. As a result, many
vehicle owners do not know who has a security interest in their
vehicle, and are unable to obtain a clean certificate of title when
they have paid off their vehicle loan. The original lienholder should
2009-S7831 - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
7831
I N S E N A T E
May 14, 2010
___________
Introduced by Sen. ADDABBO -- read twice and ordered printed, and when
printed to be committed to the Committee on Transportation
AN ACT to amend the vehicle and traffic law, in relation to establishing
the "vehicle lienholder accountability act"; to require lienholders to
provide notice to the owner of the vehicle when such lienholder
assigns his or her security interest
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "vehicle
lienholder accountability act."
S 2. Section 2120 of the vehicle and traffic law, as added by chapter
1134 of the laws of 1971, is amended to read as follows:
S 2120. Assignment by lienholder. (a) A lienholder may assign, abso-
lutely or otherwise, his OR HER security interest in the vehicle to a
person other than the owner without affecting the interest of the owner
or the validity of the security interest, [but any] PROVIDED THAT SUCH
LIENHOLDER NOTIFIES THE OWNER OF THE VEHICLE OF SUCH ASSIGNMENT, AND
EXECUTES A RELEASE OF HIS OR HER SECURITY INTEREST WITHIN TEN DAYS OF
SUCH ASSIGNMENT. ANY person without notice of the assignment is
protected in dealing with the lienholder as the holder of the security
interest and the lienholder remains liable for any obligations as lien-
holder until the assignee is named as lienholder on the certificate.
(b) The assignee may, but need not to perfect the assignment, have the
certificate of title endorsed or issued with the assignee named as lien-
holder, upon delivering to the commissioner an assignment by the lien-
holder named in the certificate in the form the commissioner prescribes.
Upon the request of the assignee the commissioner shall request the
owner to deliver to the commissioner the certificate of title.
(C) A LIENHOLDER WHO VIOLATES THE PROVISIONS OF THIS SECTION SHALL PAY
A CIVIL FINE NOT TO EXCEED ONE THOUSAND DOLLARS.
S 3. This act shall take effect on the thirtieth day after it shall
have become a law.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16630-04-0
2009-S7831A (ACTIVE) - Details
- Current Committee:
- Senate Codes
- Law Section:
- Vehicle and Traffic Law
- Laws Affected:
- Amd §2120, V & T L
- Versions Introduced in 2011-2012 Legislative Session:
-
S3302
2009-S7831A (ACTIVE) - Summary
Establishes the "vehicle lienholder accountability act"; requires lienholders to provide notice to the owner of the vehicle when such lienholder assigns his or her security interest and requires such lienholder to execute a release of his or her security interest, within ten days of such assignment.
2009-S7831A (ACTIVE) - Sponsor Memo
BILL NUMBER:S7831A
TITLE OF BILL:
An act
to amend the vehicle and traffic law, in relation to
establishing the "vehicle lienholder accountability act";
to require
lienholders to provide notice to the owner of the
vehicle when such lienholder assigns his or her security interest
PURPOSE:
To require a vehicle lienholder to provide
the vehicle's
owner with a timely lien release when such lien is assigned so that
the vehicle's owner can obtain a clear title when the lien is
satisfied.
SUMMARY OF SPECIFIC PROVISIONS:
Subdivision (a) of section 2120 of the
vehicle and traffic law is amended to require vehicle lien holders to
provide the vehicle's owner with a release of such lien within ten
days of the lien being assigned, and subdivision (c) is added to
section 2120 to impose a civil penalty not to exceed one thousand
dollars for failure to comply.
JUSTIFICATION:
2009-S7831A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
7831--A
I N S E N A T E
May 14, 2010
___________
Introduced by Sen. ADDABBO -- read twice and ordered printed, and when
printed to be committed to the Committee on Transportation -- commit-
tee discharged, bill amended, ordered reprinted as amended and recom-
mitted to said committee
AN ACT to amend the vehicle and traffic law, in relation to establishing
the "vehicle lienholder accountability act"; to require lienholders to
provide notice to the owner of the vehicle when such lienholder
assigns his or her security interest
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "vehicle
lienholder accountability act."
S 2. Section 2120 of the vehicle and traffic law, as added by chapter
1134 of the laws of 1971, is amended to read as follows:
S 2120. Assignment by lienholder. (a) A lienholder may assign, abso-
lutely or otherwise, his OR HER security interest in the vehicle to a
person other than the owner without affecting the interest of the owner
or the validity of the security interest, [but any] PROVIDED THAT SUCH
LIENHOLDER NOTIFIES THE OWNER OF THE VEHICLE OF SUCH ASSIGNMENT, AND
EXECUTES A RELEASE OF HIS OR HER SECURITY INTEREST WITHIN TEN DAYS OF
SUCH ASSIGNMENT. ANY person without notice of the assignment is
protected in dealing with the lienholder as the holder of the security
interest and the lienholder remains liable for any obligations as lien-
holder until the assignee is named as lienholder on the certificate.
(b) The assignee may, but need not to perfect the assignment, have the
certificate of title endorsed or issued with the assignee named as lien-
holder, upon delivering to the commissioner an assignment by the lien-
holder named in the certificate in the form the commissioner prescribes.
Upon the request of the assignee the commissioner shall request the
owner to deliver to the commissioner the certificate of title.
(C) A LIENHOLDER WHO VIOLATES THE PROVISIONS OF THIS SECTION SHALL PAY
A CIVIL PENALTY NOT TO EXCEED ONE THOUSAND DOLLARS.
S 3. This act shall take effect on the thirtieth day after it shall
have become a law.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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