PURCHASE, SALE AND TRANSFER OF MOTOR VEHICLES. 39A:PST-1. Title; definitions; interpretation and enforcement

Transcription

1 PURCHASE, SALE AND TRANSFER OF MOTOR VEHICLES 39A:PST-1. Title; definitions; interpretation and enforcement a. This chapter may be known and cited as the "motor vehicle certificate of ownership law." b. As used in this chapter unless other meaning is clearly apparent from the language or context, or unless inconsistent with the manifest intention of the Legislature: (1) "Abstract" means the duplicate copy of the original certificate of ownership recording any encumbrance or upon which the existence of a security interest is noted. (2) "Assignment" means the execution of a prescribed form transferring ownership of a motor vehicle from the person named therein to the purchaser. (3) "Buyer" includes purchaser, debtor, lessee, bailee, transferee, and any person buying, attempting to buy, or receiving a motor vehicle subject to a security interest, lease, bailment or transfer agreement, and their legal successors in interest. (4) "Certificate of ownership" means the document issued in conformance with this chapter, certifying ownership of a motor vehicle, other than manufacturer's or importer's certificate of origin. (5) "Contract" means conditional sale agreement, bailment, lease, chattel mortgage, trust receipt or any other form of security or possession agreement executed prior to January 1, 1963, wherein and whereby possession of a motor vehicle is delivered to the buyer and title therein is to vest in the buyer at a subsequent time upon the payment of part or all of the price, or upon the performance of any other condition or happening of any contingency, or upon the payment of a sum substantially equivalent to the value of the motor vehicle, by which contract it is agreed that the buyer is bound to become, or has the option of becoming, the owner of the motor vehicle upon full compliance with the terms of the contract. (6) "Dealer" means the agent, distributor or authorized dealer of the manufacturer of the new motor vehicle, and who has an established place of business. (7) "Debtor" means the person who owes payment or other performance of the obligation secured by a security interest in a motor vehicle. (8) "Gross vehicle weight rating" means the value specified by the manufacturer as the loaded weight of the single or combination vehicle and, if the manufacturer has not specified a value for a towed vehicle, means the value specified for the towing vehicle plus the loaded weight of the towed unit. (9) "Manufacturer" means the person who originally manufactured the motor vehicle.

2 (10) "Manufacturer's or importer's certificate of origin" means the original written instrument or document required to be executed and delivered by the manufacturer to an agent or a dealer, or a person purchasing direct from the manufacturer, certifying the origin of the vehicle. (11) "Manufacturer's number" means the original manufacturer's vehicle identification number die stamped upon the body, or frame, or either or both of them, of a motor vehicle or the original manufacturer's number die stamped upon the engine or motor of a motor vehicle. (12) Terms including motor vehicle : (A) "Any motor vehicle," "every motor vehicle," or similar term, means both new and used motor vehicles, except a "nonconventional type motor vehicle." (B) "Motor vehicles which constitute inventory held for sale" means new motor vehicles and used motor vehicles held for the purpose of sale by dealers of new or used motor vehicles, and excludes motor vehicles held for the purpose of lease or rental by a person engaged in the motor vehicle leasing or rental business. (C) "New motor vehicle" means only a newly manufactured motor vehicle, except a nonconventional type motor vehicle, and includes all such vehicles propelled otherwise than by muscular power, and motorcycles, motorized bicycles, trailers and tractors, and manufactured homes not subject to real property taxation pursuant to 54:4-1.2 et seq., excepting such vehicles as run only upon rails or tracks and manufactured homes subject to real property taxation. (D) "Nonconventional type motor vehicle" means a vehicle not designed or used primarily for the transportation of persons or property and only incidentally operated or moved over a highway, including, but not limited to, ditch-digging apparatus, well-boring apparatus, road and general purpose construction and maintenance machinery, asphalt spreaders, bituminous mixers, bucket loaders, ditchers, leveling graders, finishing machines, motor graders, road rollers, scarifiers, earth-moving carryalls, scrapers, power shovels, drag lines, self-propelled cranes, earthmoving equipment, trailers and semitrailers which weigh less than 2,500 pounds, except that no mobile or manufactured home or travel trailer shall be classified as a nonconventional type motor vehicle, motorized wheelchairs, motorized lawn mowers, bogies, farm equipment having a factory shipping weight of less than 1,500 pounds, whether or not motorized, including farm tractors within said weight limitation, industrial tractors, scooters, go-carts, gas buggies and golf carts. The Chief Administrator shall have power to make, amend and repeal regulations, not inconsistent with the provisions of this paragraph, prescribing what further vehicles or types of vehicles, not specified in this paragraph, shall be included in the category of nonconventional type motor vehicles.

3 (E) "Used motor vehicle" means every motor vehicle and motorized bicycle, except a nonconventional type motor vehicle, title to, or possession of, which has been transferred from the person who first acquired it from the manufacturer or dealer, and so used as to become what is commonly known as "secondhand" within the ordinary meaning thereof, and includes every motor vehicle and motorized bicycle other than a "new motor vehicle," a "nonconventional type motor vehicle" or a manufactured home subject to real property taxation. (13) "Person" includes natural persons, firms or copartnerships, corporations, associations, or other artificial bodies, receivers, trustees, common law or statutory assignees, executors, administrators, sheriffs, constables, marshals, or other persons in representative or official capacity, and members, officers, agents, employees, or other representatives of those hereinbefore enumerated. (14) "Purchaser" means a person who takes possession of a motor vehicle by transfer of ownership, either for use or resale, except a dealer when he takes possession through a certificate of origin. (15) "Secured party" means a lender, seller or other person in whose favor there is a security interest. (16) "Security agreement" means an agreement which creates or provides for a security interest in a motor vehicle. (17) "Security interest" means an interest in a motor vehicle which secures payment or other performance of an obligation. (18) The terms "sell" or "sale" or "purchase" and any form thereof include absolute or voluntary sales and purchases, agreements to sell and purchase, bailments, leases, security agreements whereby any motor vehicles are sold and purchased, or agreed to be sold and purchased, involuntary, statutory and judicial sales, inheritance, devise, or bequest, gift or any other form or manner of sale or agreement of sale thereof, or the giving or transferring possession of a motor vehicle to a person for a permanent use; continued possession for 60 days or more is to be construed as permanent use. (19) "Seller" means manufacturer, dealer, lessor, bailor, transferor with or without a security interest, and any other person selling, attempting to sell, or delivering a motor vehicle, and their legal successors in interest. (20) "Terminal rental adjustment clause" means a provision of an agreement which permits or requires the rental price to be adjusted upward or downward by reference to the amount realized by the lessor upon sale or other disposition of the vehicle. (21) "Title papers" means any instrument or document that is evidence of ownership of a vehicle.

4 (22) Used motor vehicle dealer" means a person engaged in the business of selling, buying or dealing in used motor vehicles, and who has an established place of business. (23) "Vehicle" means every device in, upon or by which a person or property is or may be transported upon a highway, excepting devices moved by human power or used exclusively upon stationary rails or tracks or motorized bicycles. c. This chapter shall be interpreted and construed to effectuate its general purpose to regulate and control titles to, and possession of, all motor vehicles in this state, so as to prevent the sale, purchase, disposal, possession, use or operation of stolen motor vehicles, or motor vehicles with fraudulent titles, within this state. d. The enforcement of this chapter shall be entrusted to the MVC and it may make rules and regulations necessary in its judgment for the administration and enforcement thereof in addition thereto but not inconsistent therewith. The MVC may employ and discharge any person it requires for the administration and enforcement of this chapter and fix their compensation. e. A person shall not sell or purchase any motor vehicle in this state, except in the manner and subject to the conditions provided in this chapter. f. Notwithstanding any other provision of law to the contrary, no agreement stating that it is for the lease of a vehicle shall be deemed to create a conditional sale of, or security interest in, the property which is the subject of the agreement merely because the agreement contains a terminal rental adjustment clause. Source: 39:10-1; 39:10-2; 39:10-3; 39:10-4; 39:10-5; 39: This section is substantially identical to the original sections. Subsection (a) is the former 39:10-1. Subsection (b) the former 39:10-2. The definitions have been placed in alphabetical order for ease of location. Subsection (c) is the former 39:10-3. Subsection (d) is the former 39:10-4. Subsection (e) is the former 39:10-5. Subsection (f) is the former 39: but the definitions included in that section were moved to the definitions list as numbers 21 and A:PST-2. Certificates a. The MVC may designate any person to be its agent for the issuing and filing of certificates of origin, certificates of registration and of ownership in accordance with the provisions of 39:10-11, subject to the requirements of chapter 10, and to any rules and regulations the MVC shall impose. The agent shall so act until the agent's authority is revoked by the MVC. All moneys received by such agents for the issuing and filing of certificates of origin and certificates of ownership under the provisions of this section shall be deposited as received with the State Treasurer. The fee allowed the agent for issuing and filing each certificate of ownership shall be fixed by the MVC on the basis of the fees collected by the agent for the issuing and filing of such certificates. The MVC may limit the fee so paid to a maximum. Such fee shall be paid to the agent by the State Treasurer upon the voucher of the MVC in the same manner as other State expenses are paid.

5 b. Every person shall have for each motor vehicle in his possession in this State: (a) certificate of ownership in conformity with this chapter, and (b) the registration certificate for the motor vehicle, if it is registered by the Chief Administrator and a registration certificate has been issued. A person shall produce either the certificate of ownership or registration certificate, at the discretion of the Chief Administrator, upon demand for production thereof by the Chief Administrator. If he fails to do so, the Chief Administrator may seize and take possession of the motor vehicle and hold and dispose of it in accordance with 39: c. If a motor vehicle is registered in or bears the registration plates of another state or country and is being used or operated in this State, the person in possession of it or operating it in this State must be entitled to ownership or possession in accordance with the laws of the state or country where it is registered or the registration plates of which it bears. The person operating or in possession of such a motor vehicle shall produce to the Chief Administrator documents showing title to, or right of possession in, the motor vehicle in that person or in the person who has authorized the use or operation. Alternatively, that person may produce the registration certificate or other evidence of registration, besides plates, issued by the state or country that person, or to the person who has authorized him or her to use and operate the motor vehicle, evidencing the registration of the motor vehicle. d. When a motor vehicle is in the possession of a garage keeper, motor vehicle dealer (new and used), or motor vehicle service station in this State, the production of a writing signed by the person delivering possession of the motor vehicle to the garage keeper, dealer or service station, stating that the person is the owner or entitled to the possession of the motor vehicle and has title papers or the registration certificate therefor, shall be deemed a compliance with this section insofar as the garage keeper, dealer and service station are concerned. e. Every motor vehicle and nonconventional type motor vehicle shall have and contain a manufacturer's vehicle identification number, which number shall not be obliterated, erased, mutilated, removed or missing. This section shall not affect those persons authorized by law to have in their possession a motor vehicle on which the manufacturer's number or numbers have been obliterated, erased, mutilated, removed or missing. f. When a new motor vehicle is delivered in this State by the manufacturer to an agent or a dealer, or a person purchasing directly from the manufacturer, the manufacturer shall execute and deliver to such person a certificate of origin in the form prescribed by the Chief Administrator. A person shall not bring into this State any new motor vehicle unless that person has in his or her possession the certificate of origin as prescribed by the Chief Administrator. The certificate of origin shall contain the manufacturer's vehicle identification number and the motor number when used of the motor vehicle sold, name of the manufacturer, the manufacturer's shipping weight, a general description of the body, if any, the type and model and the gross vehicle weight rating. g. When a new motor vehicle is sold in this State, the manufacturer, an agent or a dealer shall execute and deliver to the purchaser an assignment of the certificate of origin,

6 with the genuine names and business or residence addresses of both stated thereon, and certified to have been executed with full knowledge of the contents and with the consent of both purchaser and seller. When a used motor vehicle is sold in this State, the seller shall, except as provided in 39:10-15, execute and deliver to the purchaser, an assignment of the certificate of ownership or an assignment of the bill of sale issued prior to October 1, If, in connection with such sale, a security interest exists at the time of the sale, or is taken or retained by the seller to secure all or a part of the purchase price of the motor vehicle, or is taken by a person who by making an advance or incurring an obligation gives value to enable the purchaser to acquire rights in the motor vehicle, the name and the business or residence address of the secured party or assignee shall be noted on the manufacturer's certificate of origin. Nothing in this section shall apply to security interests in motor vehicles which constitute inventory held for sale, but such interests shall be subject to chapter 9 of Title 12A of the New Jersey Statutes. h. In every sale or transfer of a used motor vehicle which has been used as a police patrol car, whether the patrol car bore markings identifying it as such or not, the certificate of ownership shall state that said motor vehicle was used as a police patrol car, and shall continue to so state on each subsequent sale or transfer. Any person who transfers or attempts to transfer a motor vehicle in violation of this act shall be subject to a fine of $150 for a first offense and $250 for each subsequent offense. Such offense shall be prosecuted in the Superior Court or in the municipal court. i. In every sale or transfer of a motor vehicle returned to the manufacturer under 56:12-29, a similar statute of another state, or as the result of a legal action or an informal dispute settlement procedure, the certificate of ownership shall indicate, in a conspicuous and understandable manner, that the motor vehicle was returned to the manufacturer because it did not conform to the manufacturer's warranty and the nonconformity was not corrected within a reasonable time as provided by law. The notice required under the provisions of this subsection shall continue to appear on each certificate of ownership issued as a result of any subsequent sale or transfer of that motor vehicle. Any person who transfers or attempts to transfer a motor vehicle in violation of this section shall be subject to a fine of not more than $7,500. j. Any ambulance sold, transferred, gifted, discarded or abandoned to an entity other than a hospital, licensed ambulance dealership, an emergency service organization as defined in 40A: or any entity licensed by the Department of Health and Senior Services as an ambulance operator shall, prior to sale or transfer, be stripped of all markings that would identify the vehicle as an ambulance. The Commissioner of the Department of Health and Senior Services shall be responsible for the enforcement of this act. An action for a violation of this act may be brought in any court of competent jurisdiction, and shall be punishable as a crime of the fourth degree. k. When the contract or terms of the security agreement noted on the certificate of origin, or certificate of ownership have been performed the seller or secured party shall deliver to the buyer the certificate of ownership thereto, executed as provided in this chapter, with proper evidence of satisfaction of the contract or termination of the security interest. Within 15 days after the performance of the contract or termination of the security interest, the seller or secured party shall file with the Chief Administrator a notice, in the form he or she prescribes, containing evidence of such performance or

7 termination. The Chief Administrator shall thereupon cause a notation to be made on his records of certificate of ownership of the motor vehicle that the contract has been satisfied or the security interest terminated. Any person violating the provisions of this section shall pay a fine of $25. l. The Chief Administrator, in accordance with the provisions of the "Administrative Procedure Act", shall promulgate rules and regulations to effectuate the purposes of this section. Source: 39:10-6; 39:10-7; 39:10-8; 39:10-9; 39:10-9.1; 39:10-9.2; 39:10-9.3; 39:10-9.4; 39:10-10; 39: This section is substantially identical to the original sections. Subsection (a) is the former 39: Subsections (b) (d) are the former 39:10-6. Subsection (e) is the former 39:10-7. Subsections (f) and (g) are the former 39:10-8. The former 39:10-9 and was consolidated with (g). Subsection (h) is the former 39: and 39: Subsections (i) and (l) are the former 39: Subsection (k) is the former 39: Subsection (l) is the former 39: The penalty provisions in this section have not been included in the penalty classification system. 39A:PST-3. Submitting evidence of purchase; recording a. The purchaser of a motor vehicle in this State, other than a dealer licensed pursuant to the provisions of 39:10-19, shall, within 10 working days after its purchase, submit to the Chief Administrator evidence of the purchase. Upon presentation to the Chief Administrator of the certificate of origin, or certificate of ownership, or bill of sale issued prior to October 1, 1946, with proper assignment and certification of the seller, a record of the transaction shall be made and filed. A certificate of ownership shall be issued by the Chief Administrator and delivered to the buyer, in case of a sale not subject to a security interest, and the Chief Administrator shall collect a fee of $20 for the issuance and filing thereof. b. In the case of a sale subject to a security interest, a certificate of ownership, with the name and address of the holder of the encumbrance or secured party or his or her assignee recorded thereon, shall be delivered to the holder of the encumbrance or secured party or his or her assignee and a copy thereof shall be delivered to the buyer. The Chief Administrator shall collect a fee of $30 for issuing a certificate and copy thereof, and for making a record of and filing the record of the transaction, pursuant to this subsection. c. Except as otherwise expressly provided in this section, whenever a security interest is created in a motor vehicle, other than a security interest which is required to be noted on the certificate of origin or the certificate of ownership, as provided in 39:10-8 and 39:10-9, there shall be filed with the Chief Administrator the certificate of ownership of the motor vehicle, together with a financing statement on a form prescribed by the Chief Administrator. The Chief Administrator shall make and file a record of the transaction and shall issue a certificate of ownership, recording the name and address of the secured party or the party s assignee thereon, and shall deliver it to the secured party or the assignee. A copy of the certificate of ownership so issued shall be delivered to the buyer. The Chief Administrator shall collect a fee of $20 for the Chief Administrator s

8 services in issuing a certificate and copy thereof and for making a record of and filing the record of the transaction, pursuant to this subsection. d. The financing statement required to be filed pursuant to (c) shall be signed only by the buyer, shall not be required to be acknowledged or proved, and shall show, in addition to such matters as the Chief Administrator may require for the proper identification of the motor vehicle affected, the date of the security agreement, and the names and addresses of the parties thereto. Nothing in this section shall be construed as requiring that the security agreement or a copy thereof, or any proof of execution thereof other than that contained in the financing statement, shall be presented to the Chief Administrator. When the buyer is a corporation, it shall be sufficient if the financing statement is signed by any officer or any agent designated by the corporation for that purpose, and it shall not be necessary that the financing statement recite the authorization of the agent. When there is more than one buyer, it shall be sufficient if the financing statement is signed by any one of them. e. Nothing in subsections (c) and (d) shall apply to security interests in motor vehicles which constitute inventory held for sale, but such interests shall be subject to chapter 9 of Title 12A, nor shall anything in the said subsections apply to interests in personal property subject to chapter 28 of Title 46. f. In addition to the fees elsewhere in this section provided for, there shall be paid to the Chief Administrator at the time a certificate of ownership is issued a fee of $10 for notice of satisfaction of the lien or encumbrance of the record or abstract, or of the termination of the security interest, where the motor vehicle is subject to a lien or encumbrance or a security interest as provided in 39: g. Notwithstanding any other provision of this chapter, when any dealer licensed under the provisions of 39:10-19 is the purchaser of a motor vehicle in this State, the dealer may, within 10 working days after its purchase, submit to the Chief Administrator the evidence of purchase. Upon presentation of the certificate of ownership with proper assignment and certification of the seller to the Chief Administrator, a record of the transaction shall be made and filed. A certificate of ownership shall be issued by the Chief Administrator and delivered to such purchaser, and the Chief Administrator shall collect a fee of $10 for the issuing and filing thereof. If a dealer does not submit the evidence of purchase, upon resale of the motor vehicle the dealer shall execute and attach to the certificate of ownership a dealer reassignment certificate. The Chief Administrator shall issue dealer reassignment certificates in lots upon payment of a fee of $10 for each certificate. h. Any purchaser of a motor vehicle who fails to comply with the provisions of this section shall pay to the Chief Administrator a penalty of $25 plus the issuing and filing fee. i. The failure of a person to comply with the requirements of this section shall not constitute a misdemeanor within the provisions of 39:10-24, nor shall such failure affect the validity of any instrument creating or reserving a security interest in a motor vehicle, as between the parties to such instrument.

9 j. The notation of the name and business or residence address of a secured party or his assignee, on the certificate of origin or on the certificate of ownership, as provided in 39:10-8 and 39:10-9, and the presentation to the Chief Administrator, in accordance with 39:10-11, of the certificate of origin or certificate of ownership so noted, and the compliance with the requirements of subsections (c) and (d) shall be in lieu of all filing requirements imposed by chapter 9 of Title 12A shall constitute the perfection of a security interest in the motor vehicle, and the rights and remedies of the debtors and the secured parties in respect to such security interest shall, except as otherwise expressly provided in this chapter, be subject to and governed by chapter 9 of Title 12A. k. A person who has a certificate of ownership issued by the Chief Administrator for a mobile or manufactured home located in a mobile home park that shall be relocated on land which the owner of the home has an interest in or the title to, shall, at least 10 days prior to that relocation, file with the Chief Administrator a notice of relocation in a form and with evidence as the Chief Administrator shall prescribe. If the Chief Administrator shall accept the notice as complete, the Chief Administrator shall cancel the certificate of ownership on the date of relocation. l. If certificate of ownership, or title papers, are lost, the Chief Administrator may, upon proof of certification or otherwise in the manner required by the Chief Administrator and if satisfied of the bona fides of the application, prepare a certificate of ownership, certify it and authorize its use in place of the original, with the same effect as the original. The Chief Administrator shall collect a fee of $25 for this duplicate certificate. A person who falsely states, in any application to the Chief Administrator for a duplicate certificate of ownership, that a certificate of ownership, or title papers, are lost, shall be subject to a fine of not less than $200 nor more than $500 or imprisonment for a term not exceeding 30 days or both. m. The Chief Administrator shall retain a file of all certificates of ownership until the vehicles described therein shall be eight years old according to the year of manufacture stated in such certificate of ownership. Authority is hereby granted to the Chief Administrator to destroy all other certificates of ownership. Source: 39:10-11; 39: ; 39:10-12; 39: This section is substantially identical to the original sections. Subsections (a) (j) are the former 39: Subsection (l) is the former 39: Subsection (l) is the former 39: Subsection (m) is the former 39: A:PST-4. Notations; index; certificates; security interests a. The Chief Administrator shall, on the record or abstract of every motor vehicle registered with the Chief Administrator, which is subject to a security interest of which notice is required to be filed, make a notation of the existence of such security interest and shall index the same under the name of the owner of record of the vehicle, so long as the security interest remains unterminated of record. b. Upon request from any person, the Chief Administrator shall issue a certificate showing names and addresses of the parties to any contract of conditional sale or chattel mortgage or other instrument, or to any financing statement, the name and address of the

10 holder of the lien or liens under such contract, chattel mortgage or other instrument or of the secured party, the date thereof or of the financing statement, the date of filing, the make, model, identification number or numbers of the motor vehicle, and, if the condition in the contract of conditional sale or chattel mortgage has been performed or the security interest has been terminated, a statement to that effect, for which he shall be entitled to a fee of $5. c. For a full certified copy of any instrument showing a lien on or a security interest in a motor vehicle the Chief Administrator shall be entitled to a fee of $10 for the certificate plus $0.50 for each copy of any paper certified. d. When evidence of satisfaction of any contract of conditional sale or chattel mortgage or other instrument, or evidence of the termination of a security interest, as aforesaid, shall be presented to the Chief Administrator, the Chief Administrator shall make a notation thereof on the record of the sale of such motor vehicle, showing that the condition in the contract of conditional sale or chattel mortgage has been performed or the security interest has been terminated; provided, however, that the evidence of satisfaction of a chattel mortgage on a motor vehicle executed after September 1, 1951 shall be submitted by the county recording officer on a form prescribed by the Chief Administrator, unless the chattel mortgage is one that is not required, under the provisions of 39:10-11, to be presented to and recorded by the Chief Administrator. e. The Chief Administrator, the Chief Administrator s agents, and employees of the MVC shall not incur any personal liability in carrying out the provisions of this section or in furnishing any information provided herein from the records of the MVC. Source: 39: This section is substantially identical to the original. 39A:PST-5. Seizure of motor vehicle; sale or disposal of mobile home a. If a motor vehicle is seized, levied upon, or attached and taken into possession, actually or constructively, by virtue of judicial process issued by a court of competent jurisdiction in this State, or by virtue of a statute, State, Federal or otherwise, the person from whose possession the motor vehicle was taken, and without prejudice to that person s rights in the premises, shall surrender the title papers to the Chief Administrator upon written notice or demand from the Chief Administrator. b. The officer or person so seizing and taking possession of the motor vehicle shall immediately file with the Chief Administrator a notice in writing giving a full description of the motor vehicle, as provided in section 39:10-8, and the name and address of the person from whom taken, and shall attach a copy of process or statutory or other authority to the notice. c. If the motor vehicle is sold in pursuance thereof, the officer so selling it shall execute and deliver to the purchaser at the sale an application for certificate of ownership, in the same form and manner as provided in 39:10-8, which shall also contain the name and address of the person from whom the motor vehicle was taken. A copy of the writ, order, decree, execution or other process under which the motor vehicle is sold and a

11 copy of the notice of sale, which notice of sale shall contain a description of the motor vehicle as required by this chapter, shall be attached thereto. If the sale is held by a bailiff or attorney in fact for a lienor, the lienor shall also execute the application for certificate of ownership. The Chief Administrator, upon due application by the purchaser at the sale, shall file and record purchase of the vehicle as provided in 39:10-8. d. If a manufactured home is sold or otherwise disposed of pursuant to 2A:18-72 et al., the Chief Administrator shall issue, upon proof of purchase, a certificate of ownership to the purchaser, with no encumbrances listed thereon. Source: 39:10-15; 39: This section is substantially identical to the original sections. Subsections (a) (c) are the former 39: Subsection (d) is the former 39: A:PST-6. Defective of improper title papers or sale; procedures to correct; title papers necessary a. If the title papers or certificate of ownership are defective or improper, or if the motor vehicle was purchased and its sale consummated in another state or country, in accordance with the laws of such state or country regulating the sale of motor vehicles, and not made for the purpose of evading the provisions of this chapter, the bona fide owner of the motor vehicle may apply to the Chief Administrator to correct the defects, or permit the title papers to be received. b. The Chief Administrator shall, upon such proof as the Chief Administrator requires showing that it is just and equitable that the defects be corrected or that the title papers or certificate of ownership be received, with or without hearing, determine the truth and merits of the application and whether the holder appears to be the bona fide owner of the motor vehicle, and may issue a certificate correcting the defects or permitting the title papers or certificate of ownership to be so recorded and filed. The person submitting the papers shall pay to the Chief Administrator a fee of $20 for the issuing and filing of the certificate. c. Before issuing the certificate the Chief Administrator may, in the Chief Administrator s discretion, require the person to advertise in a newspaper having a general circulation in the county where that person resides, for the space of two weeks, at least once a week, making three insertions in all, a notice briefly stating that the person has applied to the Chief Administrator to correct defects in the motor vehicle title papers or to receive the title papers out of time, or, as the case may be, giving a description of the motor vehicle as provided in 39:10-8, and that if anyone desires to be heard in opposition thereto, such person may do so by appearing before the Chief Administrator on a date and at a place named, or communicating prior thereto. The person seeking the certificate shall also serve like notice on local police, State Police and any other person or agency, as prescribed by the Chief Administrator, personally or by registered mail. Proofs of the publication and service shall be submitted to the Chief Administrator. The Chief Administrator or the Chief Administrator s agent may have the notice advertised or served at the cost and expense of that person.

12 d. The Chief Administrator may refuse to grant a registration certificate and plates for a motor vehicle, unless there is furnished to the Chief Administrator or the Chief Administrator s agent title papers or certificate of ownership in conformity with this chapter, in addition to the requirements of 39:1-1 et seq. Source: 39:10-16; 39: This section is substantially identical to the original sections. Subsections (a) (c) are the former 39: Subsection (d) is the former 39: A:PST-7. Motor vehicle dealers license; off-site sales a. No person shall engage in the business of buying, selling or dealing in motor vehicles in this State, nor shall a person engage in activity that would qualify the person as a leasing dealer, as defined in 56:12-61, unless that person is: (1) a licensed real estate broker acting as an agent or broker in the sale of mobile homes without their own motor power other than recreation vehicles as defined in 39: , or manufactured homes as defined in 54:4-1.4; or (2) authorized to do so under the provisions of this chapter. b. The Chief Administrator may, upon application in such form as he prescribes, license any proper person as such dealer or leasing dealer. A licensed real estate broker shall be entitled to act as an agent or broker in the sale of a mobile or manufactured home as defined in subsection a. of this section without obtaining a license from the Chief Administrator. For the purposes of this chapter, a "licensed real estate broker" means a real estate broker licensed by the New Jersey Real Estate Commission pursuant to the provisions of chapter 15 of Title 45. c. Any sale or transfer of a mobile or manufactured home, in which a licensed real estate broker acts as a broker or agent pursuant to this section, which sale or transfer is subject to any other requirements of 39:10-1 et seq., shall comply with all of those requirements. d. A person who has been convicted of a crime arising out of fraud or misrepresentation in the sale, leasing or financing of a motor vehicle, shall not be eligible to receive a license. e. For the purposes of this section, each applicant for a license shall submit to the Chief Administrator the applicant's name, address, fingerprints and written consent for a criminal history record background check to be performed. The Chief Administrator is hereby authorized to exchange fingerprint data with and receive criminal history record information from the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules and regulations, for purposes of facilitating determinations concerning licensure eligibility. The applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check. The Division of State Police shall promptly notify the Chief Administrator in the event a current holder of a license or prospective applicant, who was the subject of a criminal history record

13 background check pursuant to this section, is arrested for a crime or offense in this State after the date the background check was performed. f. Each applicant for a license shall at the time such license is issued have established and maintained, or by said application shall agree to establish and maintain, within 90 days after the issuance thereof, a place of business consisting of a permanent building not less than 1,000 square feet in floor space located in the State of New Jersey to be used principally for the servicing and display of motor vehicles with such equipment installed therein as shall be requisite for the servicing of motor vehicles in such manner as to make them comply with the laws of this State and with any rules and regulations made by the Chief Administrator of motor vehicles governing the equipment, use and operation of motor vehicles within the State. However, a leasing dealer, who is not engaged in the business of buying, selling or dealing in motor vehicles in the State, shall not be required to maintain a place of business with floor space available for the servicing or display of motor vehicles or to have an exterior sign at the lessor's place of business. g. A license fee of $100 shall be paid by an applicant upon his initial application for a license. The Chief Administrator may renew an applicant's license from year to year, upon application for renewal on a form prescribed by the Chief Administrator and accompanied each year by a renewal fee of $100. h. Every license shall expire on March 31 of each year terminating the period for which it is issued. On and after February 1 of each year the Chief Administrator shall issue licenses for the following yearly period to expire on March 31 of the following year. i. For the purposes of this section, a leasing dealer or an assignee of a leasing dealer whose leasing activities are limited to buying motor vehicles for the purpose of leasing them and selling motor vehicles at the termination of a lease shall not be deemed to be engaged in the business of buying, selling or dealing in motor vehicles in this State. j. As used in this section: (1) "Off-site sale" means the display and sale of new or used recreational vehicles by a recreational vehicle dealer, or used motor vehicles registered in New Jersey by a used motor vehicle dealer, licensed under the provisions of 39:10-19, at a location other than the dealer's established place of business. An "off-site sale" includes any off-site display of vehicles at which a recreational vehicle or used motor vehicle dealer has a sales person or employee present. For the purposes of this act, "off-site sale" does not include: (A) An off-site display of vehicles at which a recreational vehicle or used motor vehicle dealer has no sales personnel present; or (B) The sale of a vehicle at an auction at which only wholesale purchases are permitted. (2) "Sponsoring organization" means:

14 (A) a credit union, automobile club, or other such not for profit organization or entity that makes the opportunity to attend and purchase a motor vehicle at an off-site sale available to its members; or (B) a trade show coordinator, or other such organization, entity, or individual that makes the opportunity to attend and purchase a recreational vehicle at an off-site sale available to ticketed individuals. k. Notwithstanding any other provision of law to the contrary, a recreational vehicle or used motor vehicle dealer, licensed under the provisions of 39:10-19, may hold an off-site sale provided he is granted a final permit to do so pursuant to 39: l. The Chief Administrator may issue a provisional permit, subject to a fee, for an off- site sale to a licensed recreational vehicle or used motor vehicle dealer, provided: (1) No more than one permit for a particular location is issued during any calendar quarter; (2) A completed application and fee, in an amount determined by the chief administrator, is received by the MVC at least 15 days prior to the first day of the sale; (3) The applicant is a recreational vehicle or used motor vehicle dealer, licensed under the provisions of 39:10-19, in good standing; (4) The sale is not conducted within 1,000 feet of the established place of business of any motor vehicle dealer licensed under the provisions of 39:10-19; (5) The display and sale of vehicles is conducted for no more than five consecutive days; and (6) The sale is not open to the general public, but limited to members of the sponsoring organization or in the case of the off-site sales of recreational vehicles, only to ticketed individuals. m. Following the issuance of a provisional permit for an off-site sale, and in the event that the chief administrator determines that neither the dealer, the sponsoring organization, nor the off-site sale location has an unsatisfactory history of violations of Title 39, the chief administrator shall issue a final permit for an off-site sale to the applicant, provided the dealer delivers to the MVC, no later than five days prior to the sale: (1) A surety bond in the amount of $500,000; or (2) A notarized copy of a certificate of self-insurance issued pursuant to 39:6-52. n. A dealer conducting an off-site sale shall maintain a booth or desk at the offsite sale premises location for the duration of the sale. The final permit for the sale and the name of the recreational vehicle or used motor vehicle dealer to whom the permit was issued shall be prominently displayed at the booth or desk at all times during the off-site sale.

15 o. Any agreements of sale, offerings, or contracts entered into during the off-site sale shall include, or have attached, the following information, in a clearly identifiable manner: (1) The address and telephone number of the established place of business of the recreational vehicle or used motor vehicle dealer conducting the off- site sale; and and (2) The recreational vehicle or used motor vehicle dealer's license number; (3) A copy of the final permit issued to the recreational vehicle or used motor vehicle dealer authorizing him to conduct the off-site sale. Source: 39:10-19; 39: ; 39: ; 39: ; 39: ; This section contains the substance of the original. The subsections have been added for ease of review. Subsections (a) - (i) are the former 39: Subsection (j) is the former 39: Subsection (k) is the former 39: Subsections (l) and (m) are the former 39: Subsections (n) and (o) are the former 39: A:PST-8. Suspension or revocation of license a. The Chief Administrator may suspend for a period less than the unexpired term of a license or revoke a license, after hearing, for a violation of any provision of this chapter or upon the final conviction of the licensee of a crime arising out of fraud or misrepresentation in the sale, leasing or financing of a motor vehicle, or upon proof of the failure of a licensee to make payment of the amount of any final judgment, rendered by a court of competent jurisdiction against such licensee and founded upon a claim arising out of fraud or misrepresentation in the sale or leasing of a motor vehicle, within 90 days after the same is finally entered, or for final conviction of the licensee for violating any provision of chapter 171 of Title 2A or of any supplement thereof. b. The clerk of the court in which any conviction is rendered, or the court where it has no clerk, shall forward to the Chief Administrator, immediately upon the entry thereof, a certified copy of the conviction or a transcript thereof. The clerk of the court in which any judgment founded upon fraud or misrepresentation is rendered, or the court where it has no clerk, shall forward to the Chief Administrator, immediately after the expiration of the 90 days, a certified copy of the judgment, or a transcript thereof, showing it to have been unsatisfied more than 90 days after it became final. c. The Chief Administrator shall, before suspending or revoking the license, and at least 10 days prior to the date set for the hearing, notify the holder of the license, in writing, of any charges made, and shall afford him an opportunity to be heard in person or by counsel. The written notice may be served either personally or by registered mail addressed to the last-known address of the licensee. d. The Chief Administrator may subpoena any person in this State to appear, or take testimony by deposition, in the same manner as prescribed by law in judicial proceedings in the courts of this State, and shall also issue and deliver to the dealer such subpoenas as are requested by him.

16 e. The Appellate Division of the Superior Court shall have power to review, by an appeal in lieu of prerogative writ taken by an aggrieved person, a final determination of the Chief Administrator. review. Source: 39: This section contains the substance of the original. The subsections have been added for ease of 39A:PST-9. Possession of title papers by dealer; seizure and sale; surrender a. All dealers for both new and used motor vehicles in this State shall have a certificate of origin, certificate of ownership, or writing provided in 39:10-6 for all motor vehicles in their possession. b. The Chief Administrator, either personally or through an agent, may demand production of, and examine, the certificate of origin, certificate of ownership, or writing provided in 39:10-6 for any motor vehicle in a dealer's possession, and examine and inspect any motor vehicle in his possession. c. If the demand is not complied with, or there is no certificate of origin, certificate of ownership or writing provided in 39:10-6 for a motor vehicle in the possession of a dealer, or if it is not in conformity with this chapter, the Chief Administrator or an agent may seize and take possession of the motor vehicle, and hold it until the certificate of origin, certificate of ownership or writing provided in 39:10-6 is produced or is corrected, if defective, or ownership of the motor vehicle is established according to law. d. After the expiration of 90 days from the date the motor vehicle came into the Chief Administrator s possession, the Chief Administrator may sell it at public sale, upon at least 10 days' written notice of sale to the dealer, served personally or by registered mail, addressed to the dealer at his last known place of business, and notice of the sale being published for a space of two weeks, once a week, making three insertions in all, in one or more newspapers published and circulating in the county where the dealer has his established place of business and also by posting the notice in five public places in the county. The newspapers and places of posting shall be designated by the Chief Administrator. e. Upon the sale of the motor vehicle, all valid liens and claims for interest therein, if any, shall be transferred from the vehicle to the proceeds of sale, which, subject thereto, shall become the sole property of the State, to be used as other moneys received by the Chief Administrator. f. The Chief Administrator may prepare and prescribe any or all forms necessary for the proper administration of this chapter. The Chief Administrator or an agent may seize and take possession of any certificate of ownership or other title papers to which the Chief Administrator may be entitled, for which a person is under duty to return, from any person or place in this State, with all the rights, privileges and immunities conferred by law on an officer executing a writ of replevin.

17 g. When a motor vehicle is scrapped, junked or destroyed, or a person permanently parts with its possession other than by sale, he shall immediately surrender and deliver the certificate of ownership to the Chief Administrator, who shall issue a receipt therefor to the person surrendering it. When a motor vehicle is sold to be scrapped, junked or destroyed, assignment shall be made to the purchaser in accordance with the provisions of section 39:10-8. The purchaser shall within five days deliver the certificate of ownership to the Chief Administrator, who shall issue a receipt therefor to the person surrendering it. Source: 39:10-21; 39:10-22; 39: This section contains the substance of the original. The subsections have been added for ease of review. Subsections (a) - (e) are the former 39: Subsection (f) is the former 39: Subsection (g) is the former 39: A:PST-10. Violations A person who purposely or knowingly violates a provision of this chapter for which a specific penalty is not provided herein shall be subject to the penalty provided in 2C: Source: 39: This section contains the substance of the original. 39A:PST-11. Standards for used motor vehicles a. Unless otherwise provided in this act, no motor vehicle dealer shall sell at retail any used passenger motor vehicle to be registered in this State, unless such vehicle, meets the standards for the issuance of a certificate of approval as provided in chapter 8 of Title 39. b. In the event that any such used passenger motor vehicle is sold at retail and has any defect, which results in its rejection for failure to meet the standards for issuance of such a certificate of approval, in the absence of a waiver as provided in this act, the seller shall make, or cause to be made, all the necessary repairs, without charge, or return the full purchase price to the purchaser; provided that such defect or defects are not the result of the purchaser's own act. c. Prior to entering into any agreement for the retail sale of a used passenger motor vehicle, the dealer shall inquire as to whether the vehicle to be purchased is intended for registration in this State in the condition sold and, if so, such fact shall be specified in the written agreement between the dealer and the purchaser, and the dealer, prior to execution of the agreement of sale, shall inform the purchaser of the dealer's responsibilities under this act. d. Any agreement of retail sale may contain a provision whereby the purchaser waives the dealer's obligation under 39:10-27 provided, however, any such waiver must be separately stated in the agreement of retail sale and separately signed by the purchaser.

18 The signing of such a waiver by the purchaser shall also serve to eliminate any criminal responsibility placed upon any motor vehicle dealer by this act. e. Any dealer who fails to comply with the provisions of this act is a disorderly person. Source: 39:10-26; 39:10-27; 39:10-28; 39:10-29; 39: This section contains the substance of the original sections. Subsection (a) is the original 39: Subsection (b) is the former 39: Subsection (c) is the former 39: Subsection (d) is the former 39: Subsection (e) is the former 39: A:PST-12. Salvage certificates of title a. As used in this section "salvage certificate of title" means a document issued by the Chief Administrator which serves as proof of ownership of a motor vehicle and provides a method of transfer of the vehicle only as a salvage motor vehicle. b. If a motor vehicle has either been reported as being stolen or suffered sufficient damage to render it economically impractical to repair, the person in possession of the certificate of ownership for the vehicle shall surrender the certificate of ownership to the Chief Administrator along with a statement setting forth how the person acquired the certificate of ownership. c. The Chief Administrator, after determining ownership, shall issue a salvage certificate of title to a person who surrenders a certificate of ownership pursuant to subsection a. of this section. d. If a motor vehicle reported as being stolen is subsequently recovered, a certificate of ownership for the vehicle which had been surrendered to the Chief Administrator by a person pursuant to 39:10-32 may be issued by the Chief Administrator to that person only if: (1) The person presents to the Chief Administrator a salvage certificate of title for the motor vehicle; (2) The person presents to the Chief Administrator a report from the law enforcement agency which recovered the vehicle; and (3) The vehicle passes an inspection at a State inspection facility to determine the accuracy of its vehicle identification number. e. If a motor vehicle which has suffered sufficient damage to render it economically impractical to repair is subsequently repaired, a certificate of ownership for the vehicle may be issued to a person only if: title; (1) The person presents to the Chief Administrator a salvage certificate of (2) The repaired vehicle is inspected by an official specially designated by the Chief Administrator to determine the accuracy of its vehicle identification number;

19 (3) The person submits proof of ownership of repair parts used to the Chief Administrator; and (4) The person complies with any other requirement the Chief Administrator deems appropriate. f. The Chief Administrator shall establish a fee for the inspections required by 39:10-33 and 39: The fees shall be deposited in a non-lapsing fund which is dedicated to the administration of this act. g. If a motor vehicle has been issued a salvage certificate of title, or similar document, by another state, that vehicle may be issued a certificate of ownership pursuant to 39:10-33 or 39: Source: 39:10-31; 39:10-32; 39:10-33; 39:10-34; 39:10-35; 39:10-36; 39: This section contains the substance of the original sections. Subsection (a) is the former 39: Subsections (b) and (c) are the former 39: Subsection (d) is the former 39: Subsection (e) is the former 39: Subsection (f) is the former 39: Subsection (g) is the former 39: The former 39:10-37 has been deleted and the reference to rules and regs will be included in a general section.