Senate Bill S6409

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6409
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 17, 2017
                                ___________
 
 Introduced  by  Sen.  ROBACH  --  (at request of the Department of Motor
   Vehicles) -- 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 the release
   of security interests in certain motor vehicles

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 2121 of the vehicle and traffic law is amended by
 adding a new subdivision (c) to read as follows:
   (C) (1) FOR AUTOMOBILES HAVING  AN  UNLADEN  WEIGHT  OF  TEN  THOUSAND
 POUNDS  OR  LESS, AND MOTORCYCLES, A SECURITY INTEREST THAT HAS NOT BEEN
 RELEASED AS PROVIDED IN SUBDIVISIONS (A) AND (B) OF THIS  SECTION  SHALL
 BE  CONSIDERED  SATISFIED,  A  RELEASE OF SECURITY INTEREST SHALL NOT BE
 REQUIRED, AND THE SECURITY INTEREST SHALL BE AUTOMATICALLY  RELEASED  BY
 THE COMMISSIONER AFTER TEN YEARS FROM THE DATE THE SECURITY INTEREST WAS
 RECORDED  IN  THE RECORDS OF THE DEPARTMENT. UPON SUCH AUTOMATIC RELEASE
 OF A SECURITY INTEREST, THE COMMISSIONER MAY RECORD  THAT  THE  SECURITY
 INTEREST  IS  DEEMED  SATISFIED,  REMOVE  THE SECURITY INTEREST FROM ITS
 FILES, AND UPON SUBMISSION OF ANY  REQUIRED  FORMS  AND  FEES,  ISSUE  A
 CERTIFICATE  OF TITLE THAT REFLECTS FULL SATISFACTION AND RELEASE OF THE
 SECURITY INTEREST. PROVIDED HOWEVER, THAT THE PROVISIONS OF  THIS  PARA-
 GRAPH SHALL NOT APPLY IF, BEFORE THE DATE OF SUCH AUTOMATIC RELEASE, THE
 HOLDER  OF  THE  SECURITY  INTEREST PERFECTS THE SECURITY INTEREST FOR A
 SECOND TIME IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE.
   (2) FOR AUTOMOBILES HAVING AN UNLADEN WEIGHT OF TEN THOUSAND POUNDS OR
 LESS, AND MOTORCYCLES, IF A SECURITY INTEREST HAS NOT BEEN  RELEASED  AS
 PROVIDED  IN  SUBDIVISIONS  (A)  AND  (B)  OF THIS SECTION, AN OWNER MAY
 SUBMIT TO THE COMMISSIONER EVIDENCE TO DEMONSTRATE  THAT  SUCH  SECURITY
 INTEREST  HAS BEEN SATISFIED, AND THAT THE HOLDER OF THE SECURITY INTER-
 EST IS NO LONGER IN BUSINESS, OR THAT THE HOLDER HAS REFUSED  OR  FAILED
 TO  ISSUE  A  RELEASE  WITHIN  FIFTEEN  BUSINESS  DAYS  AFTER THE HOLDER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10167-01-7

 S. 6409                             2
 
 RECEIVED A PAYMENT  IN  FULL  SATISFACTION  OF  THE  SECURITY  INTEREST.
 EVIDENCE  THAT A SECURITY INTEREST HAS BEEN SATISFIED SHALL INCLUDE: (I)
 EVIDENCE THAT AN INTERBANK OR ELECTRONIC  TRANSFER  OF  FUNDS  HAS  BEEN
 MADE;  OR  (II)  EVIDENCE THAT A COPY OF A CASHIER'S CHECK OR BANK CHECK
 HAS BEEN DELIVERED; OR (III) OTHER EVIDENCE AS DETERMINED TO  BE  SATIS-
 FACTORY  BY  THE  COMMISSIONER;  AND  (IV) IF THE HOLDER OF THE SECURITY
 INTEREST IS STILL IN BUSINESS, EVIDENCE THAT THE AMOUNT DELIVERED TO THE
 HOLDER OF THE SECURITY INTEREST IS EQUAL TO THE AMOUNT  WHICH  HAS  BEEN
 REPRESENTED  TO  THE  OWNER  BY  THE  HOLDER OF THE SECURITY INTEREST AS
 SUFFICIENT TO SATISFY THE LIEN. ANY EVIDENCE SUBMITTED  TO  THE  COMMIS-
 SIONER  PURSUANT TO THIS SUBDIVISION MAY, SUBJECT TO THE APPROVAL OF THE
 COMMISSIONER, BE SUBMITTED IN ELECTRONIC FORM. IF THE COMMISSIONER FINDS
 THAT THE EVIDENCE OF SATISFACTION OF THE SECURITY INTEREST, AND EVIDENCE
 THAT THE HOLDER OF THE SECURITY INTEREST IS NO LONGER IN BUSINESS OR HAS
 REFUSED OR FAILED TO  ISSUE  A  RELEASE  OF  THE  SECURITY  INTEREST  AS
 DESCRIBED  ABOVE  IS  SATISFACTORY, THE COMMISSIONER MAY RECORD THAT THE
 SECURITY INTEREST IS SATISFIED, REMOVED THE SECURITY INTEREST  FROM  ITS
 FILES,  AND  UPON  SUBMISSION  OF  ANY  REQUIRED FORMS AND FEES, ISSUE A
 CERTIFICATE OF TITLE THAT REFLECTS FULL SATISFACTION AND RELEASE OF  THE
 SECURITY INTEREST.
   (3)  FOR PURPOSES OF THIS SUBDIVISION, "AUTOMOBILE" SHALL INCLUDE CARS
 AND PICK-UP TRUCKS, AND ANY OTHER VEHICLE AS SET  FORTH  IN  REGULATIONS
 ISSUED  BY  THE  COMMISSIONER. A "CAR" SHALL INCLUDE, BUT NOT BE LIMITED
 TO,  CONVERTIBLES,  COUPES,  HARDTOPS,  HATCHBACKS,  JEEPS,   MINI-CARS,
 SEDANS,  SPORTS  CARS,  SPORTS UTILITY VEHICLES, AND ANY CAR TYPE AS SET
 FORTH IN THE REGULATIONS OF THE COMMISSIONER. A  "PICK-UP  TRUCK"  SHALL
 MEAN  A  TRUCK  WITH  A  CARGO  BED AND SIDEWALLS, REGARDLESS OF SEATING
 CAPACITY WITHIN THE CAB, AND ANY TRUCK TYPE AS SET FORTH  IN  THE  REGU-
 LATIONS OF THE COMMISSIONER.
   (4)  THE  DEPARTMENT MAY ISSUE REGULATIONS IMPLEMENTING THE PROVISIONS
 OF THIS SUBDIVISION, INCLUDING BUT NOT LIMITED TO:   SATISFACTORY  PROOF
 OF  PAYMENT  IN FULL OF THE SECURITY INTEREST; THE PARTICULAR STEPS THAT
 THE OWNER HAS MADE TO LOCATE THE HOLDER OF THE  SECURITY  INTEREST;  AND
 SECURITY  INTERESTS AND ENTITIES WHICH MAY BE EXEMPT FROM THE PROVISIONS
 OF THIS SUBDIVISION.
   (5) THE PROVISIONS OF  THIS  SUBDIVISION  SHALL  NOT  APPLY  TO  LIENS
 CREATED  OR FILED PURSUANT TO SECTION ONE HUNDRED ELEVEN-U OF THE SOCIAL
 SERVICES LAW.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law, and shall apply to security  interests  that
 have  not  been  released,  whether recorded on certificates of title or
 filed with the department of motor vehicles,  on  or  after  such  date;
 provided,  however,  that effective immediately, the addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of this act on its effective date is authorized to be made and completed
 on or before such date.