§ 318. Revocation of registrations, drivers' licenses and non-resident
privileges. 1. (a) Except as otherwise provided in this subdivision, the
commissioner, upon receipt of evidence that proof of financial security
for any motor vehicle, other than a motorcycle or a motor vehicle
registered with registration plates of this state issued in the year
corresponding to the model year date in which the vehicle was
manufactured pursuant to schedule G of subdivision seven of section four
hundred one of this chapter, registered in this state is no longer in
effect shall suspend the registration of such vehicle and the driver's
license of the registrant, in accordance with the provisions of
subdivision one-a of this section.

(b) Such motor vehicle shall not be registered or reregistered in the
name of such person, or in any other name where the commissioner has
reasonable grounds to believe that such registration or reregistration
will have the effect of defeating the purposes of this article, and no
other motor vehicle shall be registered in the name of such person
during the period of such suspension.

(c) Suspension shall not be made under this subdivision upon the basis
of a lapse or termination of insurance if the registration certificate
and number plates of the motor vehicle are surrendered prior to the time
at which the termination of insurance becomes effective. Such surrender
shall be made to such officers of the department as the commissioner
shall direct, but the registrant at his option may surrender the
registration and number plates to any county clerk who is acting as an
agent of the commissioner pursuant to section two hundred five of this
chapter. Such county clerk may accept a surrender of registration and
number plates and require the payment of a fee of one dollar whether
such surrender is made before or after the effective date of termination
of insurance. The county clerk shall retain any such fee which may have
been collected, and shall return such registration certificates and
number plates, or dispose of the same, only as prescribed by the
commissioner. For the purposes of this section the expiration of a
registration without renewal of such registration shall be deemed to be
a surrender of registration as of the date of expiration.

(d) Suspension shall not be made under this subdivision upon the basis
of a lapse or termination of insurance if the vehicle has been, or will
be, prior to the date of such lapse or termination, removed from the
United States in North America and the Dominion of Canada for the
purpose of international traffic, provided that the owner of such
vehicle, prior to the date of such lapse or termination, has filed with
the commissioner a statement, in a form prescribed by him, indicating
that the vehicle has been, or will be, so removed, and agreeing to
notify the commissioner immediately upon return of the vehicle to the
United States in North America or the Dominion of Canada. Upon receipt
of the foregoing statement the commissioner shall restrict the use of
the registration to such international traffic until new proof of
financial security has been secured for the vehicle.

(e) Suspension need not be made under this subdivision upon the basis
of a lapse or termination of insurance if the period of time during
which the motor vehicle remained both registered and uninsured was not
more than seven days. The commissioner shall promulgate regulations
governing the conditions under which suspension action may be withheld
pursuant to this paragraph.

1-a. (a) The suspension of a registration provided in subdivision one
of this section shall take effect on the date specified in the order of
suspension and shall remain in effect until the registration certificate
and number plates of the motor vehicle have been surrendered to the
commissioner and thereafter for a period of time equal to the time from
the date of termination of financial security to the date of such
surrender or to the date upon which subsequent financial security was
obtained or to the date on which the registrant no longer had an
insurable interest in the vehicle.

(b) Notwithstanding the provisions of paragraph (a) of this
subdivision, an order of suspension issued pursuant to paragraph (a) or
(e) of this subdivision may be terminated if the registrant pays to the
commissioner a civil penalty in the amount of eight dollars for each day
up to thirty days for which financial security was not in effect, plus
ten dollars for each day from the thirty-first to the sixtieth day for
which financial security was not in effect, plus twelve dollars for each
day from the sixty-first to the ninetieth day for which financial
security was not in effect. Of each ten dollar penalty collected, eight
dollars will be deposited in the general fund and two dollars shall be
deposited in the dedicated highway and bridge trust fund established
pursuant to section eighty-nine-b of the state finance law and the
dedicated mass transportation fund established pursuant to section
eighty-nine-c of the state finance law and distributed according to the
provisions of subdivision (d) of section three hundred one-j of the tax
law. Of each twelve dollar penalty collected, eight dollars will be
deposited into the general fund and four dollars shall be deposited in
the dedicated highway and bridge trust fund established pursuant to
section eighty-nine-b of the state finance law and the dedicated mass
transportation fund established pursuant to section eighty-nine-c of the
state finance law and distributed according to the provisions of
subdivision (d) of section three hundred one-j of the tax law. The
foregoing provision shall apply only once during any thirty-six month
period and only if the registrant surrendered the certificate of
registration and number plates to the commissioner not more than ninety
days from the date of termination of financial security or submits to
the commissioner new proof of financial security which took effect not
more than ninety days from the termination of financial security.

(c) No number plates shall be returned to the registrant until proof
of financial security is submitted to the commissioner.

(d) The provisions of this subdivision relating to termination of
suspension upon payment of a civil penalty shall be applicable to a
registrant only one time during any three year period.

(e) If a registrant has not surrendered his certificate of
registration and number plates or obtained financial security within
ninety days from the date of termination of financial security, the
commissioner shall suspend the driver's license of any such registrant.
Such suspension shall take effect on the date specified in such order
and shall remain in effect from the date of surrender of such license
and thereafter for the period of time of the suspension of the
registrant's registration.

(g) Any civil penalty paid pursuant to paragraph (b) of this
subdivision shall be separate and distinct from any civil penalty
assessed pursuant to subdivision five of section three hundred nineteen
of this chapter.

2. (a) The commissioner upon receipt of evidence that the owner of a
motor vehicle registered in this state, or an unregistered motor
vehicle, has operated, or permitted such motor vehicle to be operated
upon the public highways of this or any other state while proof of
financial security was not in effect with respect to such vehicle, shall
revoke the registration, if any, of the vehicle and the driver's
license, if any, of such owner.

(b) Such motor vehicle shall not be registered in the name of such
person, or in any other name where the commissioner has reasonable
grounds to believe that such registration will have the effect of
defeating the purpose of this article, and no other motor vehicle shall
be registered in the name of such person, nor any driver's license
issued to such person, for a period of one year from the date of such
revocation.

3. (a) The commissioner, upon receipt of evidence that a person, other
than the owner, has operated upon the public highways of this state a
motor vehicle registered in this state, or an unregistered motor
vehicle, with knowledge that proof of financial security was not in
effect with respect to such vehicle, shall revoke the driver's license
of such person, or if he is a non-resident, the non-resident driving
privileges of such person.

(b) No new driver's license shall be issued, or non-resident driving
privilege restored to such person for a period of one year from the date
of such revocation.

(c) This subdivision shall not apply to any person who at the time of
operation of such motor vehicle had in effect an operator's policy of
liability insurance, as hereinafter defined, with respect to his
operation of such vehicle or to a police officer or member of the state
police who is compelled to assume the custody and operation of a motor
vehicle of another because such motor vehicle was (1) stolen from or
lost by the owner, (2) abandoned, either by the owner or any other
person with or without the owner's consent, (3) is being operated by a
person disabled so as not to be able to operate it properly, or (4) is
being operated by an intoxicated person.

4. (a) The commissioner, upon receipt of evidence that the owner of a
motor vehicle not registered in this state has operated or permitted
such motor vehicle to be operated upon the public highways of this state
while proof of financial security was not in effect with respect to such
vehicle, shall revoke such person's privilege to operate any motor
vehicle in this state and the privilege of the operation within this
state of any motor vehicle owned by him.

(b) Such non-resident privileges shall not be restored for a period of
one year from the date of such revocation.

5. (a) The commissioner, upon receipt of evidence that a person, other
than the owner of the vehicle, has operated upon the public highways of
this state a motor vehicle not registered in this state, with knowledge
that proof of financial security was not in effect with respect to such
vehicle shall revoke the driver's license of such person, or if he is a
non-resident, the non-resident privileges of such person.

(b) No new driver's license shall be issued, or non-resident privilege
restored to such person for a period of one year from the date of such
revocation.

(c) This subdivision shall not apply to any person who at the time of
operation of such motor vehicle had in effect an operator's policy of
liability insurance, as hereinafter defined, with respect to his
operation of such motor vehicle or to a police officer or member of the
state police who is compelled to assume the custody and operation of a
motor vehicle of another because such motor vehicle was (1) stolen from
or lost by the owner, (2) abandoned, either by the owner or any other
person with or without the owner's consent, (3) is being operated by a
person disabled so as not to be able to operate it properly, or (4) is
being operated by an intoxicated person.

6. Notice of revocation pursuant to this section may be given to the
owner of a vehicle registered in this state or to a driver licensed in
this state, by mailing the same to such owner or licensee at the address
contained in the certificate of registration for the vehicle owned by
such person or to the address contained on his or her driving license or
to the current address provided by the United States postal service.

7. Failure of such owner or licensee to deliver a certificate of
registration, number plates or driver's license to the commissioner
after revocation thereof or as otherwise provided in section three
hundred twelve shall constitute a misdemeanor.

8. An operator's policy of liability insurance, as used in this
section, shall mean a policy issued by an insurance carrier duly
authorized to transact business in the state which shall insure the
person named therein as insured, against loss from the liability imposed
upon him by law for damages, including damages for care and loss of
services, because of bodily injury to or death of any person and injury
to or destruction of property arising out of the use by him of any motor
vehicle not owned by him, subject to the same minimum provisions and
approval required by subdivision four of section three hundred eleven of
this chapter, with respect to an owner's policy of liability insurance.
With respect to a non-resident, such policy may also be issued by a
non-admitted insurance carrier provided the requirements of this article
with respect to issuance of an owner's policy of liability insurance by
such carrier have been met.

9. (a) If a motor vehicle has been involved in an accident, and its
registration or the driver's license of its operator, or both, have been
revoked pursuant to this section, then neither such vehicle nor any
other motor vehicle shall be registered or reregistered in the name of
its owner or of any other person legally responsible for its use, nor
shall any driver's license be issued to such owner, person or operator
until one year has passed since the date of such revocation and, as the
case may be, the commissioner has received the payments and evidence
required by paragraph (c) below.

(b) If a motor vehicle not registered in this state is involved in an
accident in this state and the privilege of its operation within this
state has been revoked, then neither its owner, any person legally
responsible for its use nor its operator shall exercise the privilege of
the operation of such vehicle within this state or the privilege of
operation within this state of any motor vehicle, until one year has
passed since the date of revocation and, as the case may be, the
commissioner has received the payments and evidence as required in (c)
below.

(c) The payments and evidence referred to in paragraphs (a) and (b)
above shall be evidence, satisfactory to the commissioner,

(1) That no cause of action based upon such accident against such
owner, person legally responsible or operator has been commenced within
a period of one year from the date of the accident or a release thereof
has been given to such owner, person or operator, or

(2) That no judgment arising out of such cause of action for amounts
within the limits stated in paragraph (a) of subdivision four of section
three hundred eleven against such owner, person or operator remains
unsatisfied, except that such registration and licensing privileges may
be restored on compliance with the procedures permitting the payment of
a judgment in installments provided in section three hundred thirty-four
and

(3) That all civil penalties required to be paid to the department
pursuant to the provisions of subdivision five of section three hundred
nineteen of this chapter have been paid.

10. The provisions of subdivision seven of section five hundred ten of
this chapter shall apply to a revocation under this article.

11. (a) Where the license or privileges of any person, or the
registration of a motor vehicle registered in his name, has been
suspended or revoked under article six of this chapter, and the motor
vehicle accident indemnification corporation or an insurer has paid any
amount towards satisfaction of a judgment against such person, or has
obtained a judgment against such person as a result of payments made to
third parties such license, privileges or registration shall be
suspended, or the suspension or revocation thereof shall be continued,
as provided in this subdivision.

(b) If the license, privileges or registration of such person has not
been restored, the suspension or revocation thereof shall be continued
pending the satisfaction of the requirements of paragraph (d) of this
subdivision.

(c) If the license, privileges or registration of such person has been
restored, the commissioner shall suspend such license or privilege, and
may suspend such registration, pending the satisfaction of the
requirements of paragraph (d) of this subdivision.

(d) Such suspensions and revocations shall be continued until such
person has repaid to the corporation or to such insurer any amount so
paid by it together with interest thereon at six per centum per annum
from the date of such payment, unless such person submits to the
procedure provided for the payment of judgments in installments under
section three hundred thirty-four of this chapter.

(e) A discharge in bankruptcy shall not relieve a person of the
penalties and disabilities provided in this article.

12. (a) If the owner or operator of a motor vehicle in any manner
involved in an accident occurring in this state resulting in death or
bodily injuries to any person fails to produce satisfactory evidence as
proof of financial security within forty-eight hours after the accident,
the motor vehicle shall be subject to impoundment and any peace officer,
acting pursuant to his special duties, or any police officer is
authorized to impound and store such motor vehicle. If said motor
vehicle is subject to impoundment and is not so impounded, the owner or
his representative shall cause said motor vehicle to be stored in a
public garage or storage place in this state as selected by the owner or
representative and shall continue such storage for the period of time
provided in this section. The aforementioned storage shall constitute
"impoundment" within the meaning of this section. The cost of storage of
any such impounded motor vehicle shall be borne by the owner. So long as
the impoundment is in force no person shall remove the impounded vehicle
or permit it to be removed from its place of impoundment except upon the
order of the commissioner.

(b) Immediately upon impoundment, the owner or his representative
shall:

1. Notify the bailee of the impounded motor vehicle of the fact that
the same is stored as an impounded vehicle,

2. Notify the commissioner in writing of the street address and city
or municipality where said motor vehicle is stored, and

3. If the owner is a resident of this state, return the registration
certificate and registration plates with respect to such motor vehicle
to the commissioner.

If the owner or his representative fails to store said motor vehicle
as required by subdivision (a) and fails to return such registration
certificate and registration plates, the commissioner is authorized to
direct any peace officer acting pursuant to his special duties, or
police officer to impound and store said motor vehicle at the expense of
the owner and to take possession of the registration certificate and
registration plates and return the same to the commissioner of motor
vehicles.

(c) The impoundment shall continue until (1) there is a final
disposition of the claim for death or bodily injury of the person,
resulting from the accident in which said motor vehicle was involved, by
payment of a judgment or settlement by the owner, or by a final judgment
in his favor, or (2) one year has elapsed since the date of the accident
and no filing has been made pursuant to section five thousand two
hundred eight of the insurance law, or (3) a release of the motor
vehicle upon order of the commissioner. The commissioner may order the
release of said motor vehicle upon the depositing with the commissioner
of taxation and finance of security or a bond in such form and amount as
may be approved by the commissioner. If said motor vehicle is not
released from impoundment after the lapse of one year, the commissioner
may dispose of it by public sale and remit the proceeds from the sale to
the commissioner of taxation and finance to be held pending the final
disposition of the claim.

(d) If repairs to an impounded motor vehicle are desired by the owner,
he, with the permission of the commissioner, may authorize the motor
vehicle to be taken to such repair shop or garage as he may select for
the purpose of having it repaired at the owner's expense. Upon
completion of such repairs, the motor vehicle shall be impounded as
provided in subdivision (a).

Where the commissioner is satisfied by such evidence as he deems
sufficient, that any motor vehicle is so damaged that it cannot be
restored to operable condition, he may, in his discretion, upon such
conditions as he deems proper, consent to the release of said motor
vehicle from impoundment.

(e) No owner of a motor vehicle subject to impoundment hereunder shall
transfer title to said motor vehicle nor his interest therein unless he
furnishes to the commissioner security, in an amount which the
commissioner is satisfied is equivalent to the value of said vehicle or
his interest therein.

(f) Nothing herein contained shall affect the rights or remedies of
any person holding a prior valid lien on an impounded vehicle, including
the right to take possession, existing at the effective date of this
section or the right of the bailee to a lien for storage of the
impounded vehicle; provided, that such person shall, after the sale of
such vehicle for the satisfaction of any liens thereon, remit to the
commissioner as deposits of security under this article on behalf of the
former owner or purchaser of such vehicle any sums which such owner or
purchaser would otherwise be entitled to receive.

(g) Any person who wilfully violates any of the provisions of this
subdivision shall, in addition to any other penalty provided by law, be
liable to the people of this state for a penalty in an amount not less
than one hundred dollars nor more than one thousand dollars for each
violation.

13. (a) Subject to the provisions of paragraph (b), no revocation or
suspension order shall be issued pursuant to this section, or if such
revocation or suspension order has been issued, it shall be terminated,
if the commissioner shall determine that the person involved was not
aware of the fact that financial security was not in effect and the
failure to have such financial security in effect was caused solely by
the negligence or malfeasance of a person other than such person.

(b) The burden of proving lack of knowledge that financial security
was not in effect and that such failure resulted solely from the
negligence or malfeasance of another shall be upon the person seeking to
avoid revocation or suspension action. Such facts shall be established
by clear and convincing evidence, either by the submission of affidavits
or at a hearing called in the discretion of the commissioner.

14. No registration and/or license, which has been revoked pursuant to
this section because the holder was convicted of driving without
insurance in violation of subdivision one of section three hundred
nineteen of this chapter, shall be restored until all civil penalties,
required to be paid to the department pursuant to the provisions of
subdivision five of section three hundred nineteen of this chapter, have
been paid.

15. Notwithstanding any provisions of this section, a restricted use
license or privilege of operating a motor vehicle in this state may be
issued to a person who has had his license or such privilege revoked or
suspended pursuant to any provision of this section in accordance with
article twenty-one-A of this chapter.