§ 429. Junk and salvage vehicles. 1. Requirements upon acquisition of
junk or salvage vehicles. (a) By an insurance company. Whenever an
insurance company acquires a motor vehicle in settlement of a claim for
damage thereto or theft thereof, such company shall deliver a statement
concerning such acquisition to the commissioner as provided in this
section. Such company shall deliver the certificate of title or any
other ownership documents relating to such motor vehicle properly
executed to transfer title from the insured to the company and notices
of release of security interest from any lienholder whose lien has been
satisfied to the commissioner with the required statement of
acquisition.

(b) By a vehicle dismantler. Whenever a person who is engaged in a
business requiring him to be registered as a vehicle dismantler or an
itinerant vehicle collector acquires a motor vehicle which has been sold
or otherwise disposed of as junk or for salvage, such person shall
deliver a statement concerning such acquisition to the commissioner as
provided in this section. Such person shall deliver the certificate of
title or any other ownership documents relating to such motor vehicle
properly executed to transfer title by the transferor to the vehicle
dismantler or itinerant vehicle collector and notices of release of
security interest from any lienholder whose lien has been satisfied to
the commissioner with the required statement of acquisition. However,
the provisions of this subdivision shall not apply to a vehicle which
has been transferred to a vehicle dismantler registered under section
four hundred fifteen-a of this chapter by means of a document issued
pursuant to this section. The commissioner may, by regulation, allow the
requirements of this subdivision with respect to the delivery of
documents to be satisfied by an electronic filing of the necessary
information by or on behalf of the person to whom such requirements
apply.

(c) By other persons. Whenever a person other than a person described
in paragraph (a) or (b) of this subdivision acquires ownership of a
motor vehicle which has been sold or otherwise disposed of as junk or
salvage or which is to be dismantled for use other than as a motor
vehicle, such person shall deliver a statement concerning such
acquisition to the commissioner as provided in this section. Such person
shall deliver the certificate of title and any other ownership documents
relating to such motor vehicle properly executed to transfer title by
the transferor to such person and notices of release of security
interest from any lienholder whose lien has been satisfied to the
commissioner with the required statement of acquisition. However, the
provisions of this subdivision shall not apply to a vehicle which has
been transferred to any such person by means of a document issued
pursuant to this section or to a scrap processor by a person registered
or certified pursuant to section four hundred fifteen-a of this chapter.

(d) A statement of acquisition and all documents required to be
submitted to the commissioner pursuant to this section or regulations
promulgated thereunder must be so submitted within the time specified by
regulation of the commissioner. Any person who, knowingly and willfully,
and with intent to defraud a subsequent purchaser as to the applicable
status of a motor vehicle, makes any false statement on an application
for title or duplicate title for a motor vehicle pursuant to this
section or fails to submit the statement of acquisition and supporting
documentation to the commissioner within the time specified by
regulation shall be subject to a civil penalty of up to two thousand
dollars for each offense found to have been committed. Such penalty may
only be imposed if such person has had the opportunity to be heard
before an officer or employee of the department designated for such
purpose by the commissioner, upon any charge of a violation of this
paragraph or regulations promulgated by the commissioner with respect to
this paragraph.

1-a. Requirements for certain fleet vehicles. (a) Whenever a motor
vehicle titled or registered by a fleet owner becomes a severely damaged
fleet vehicle, prior to the transfer of such vehicle or any major
component part thereof, the fleet owner shall deliver a statement
concerning such occurrence to the commissioner as provided in this
section. Such fleet owner shall deliver the certificate of title in its
name or any other ownership documents relating to such motor vehicle and
notices of release of security interest from any lienholder whose lien
has been satisfied to the commissioner with the required statement
concerning such occurrence. Such a statement shall be subject to all
provisions of law applicable to a statement of acquisition except as may
otherwise be specified by regulation of the commissioner.

(b) For the purposes of this section, a fleet owner shall mean a
person who has twenty-five or more vehicles titled or registered in his
name in this state and who does not have such vehicles insured for
damage or theft by an insurance company duly authorized to transact
business in this state.

(c) For the purposes of this section, a severely damaged fleet vehicle
shall mean a motor vehicle titled or registered in the name of a fleet
owner in this state or in any other state or province of Canada which
has received damage and which has not been placed back in fleet use by
the fleet owner subsequent to receipt of such damage. However, it shall
not include a motor vehicle titled and registered in another state or a
province of Canada if the damage was incurred outside of this state and
the vehicle is sold by the fleet owner outside of this state, or shall
include a motor vehicle which has a fair market value after such damage
of at least sixty percent of the fair market value of an undamaged
similar model vehicle unless such motor vehicle requires the replacement
of the engine in order to be made operable.

(d) If a severely damaged fleet vehicle is sold by a fleet owner in
violation of this section, the purchaser or any subsequent good faith
purchaser, may rescind such sale and recover the price he paid to his
transferor for the vehicle from the fleet owner. Recovery of the
purchase price may be enforced in a civil action to recover damages.

(e) The provisions of this subdivision shall not apply to any vehicle
titled or registered in the name of a public utility subject to the
authority of the public service commission for which such utility has
obtained an exemption in accordance with the following provisions of
this subdivision. In order to obtain such exemption, the utility must
forward to the commissioner a listing, including model year, make and
vehicle identification number of any or all vehicles for which exemption
is requested not more than sixty and not less than thirty days prior to
the date of proposed sale of such vehicle or vehicles. Such listing
shall contain the date, time and place of such proposed sale. Any
vehicle contained on such listing shall be exempt from the provisions of
this subdivision, but such exemption shall be applicable only with
respect to a sale of any such vehicle made upon the date contained on
the listing.

2. Transfer of junk and salvage vehicles. (a) When an insurance
company, vehicle dismantler, fleet owner, or any other person submits a
statement of acquisition for a junk or salvage vehicle or a severely
damaged fleet vehicle, as provided in subdivision one or one-a of this
section, such insurance company, vehicle dismantler, or other person
shall prepare and distribute a statement of acquisition in accordance
with regulations promulgated by the commissioner. A copy of such
statement of acquisition designated by the commissioner shall serve as
proof of ownership for the vehicle and shall provide a method of
transfer of such a vehicle as a junk vehicle and may serve as an
application for title if the vehicle is subsequently rehabilitated or
repaired for the purpose of being operated upon the public highways.

(b) The provisions of section four hundred twenty-one of this chapter
prohibiting the sale of a motor vehicle with a removed, altered or
defaced vehicle identification number plate shall not apply to the sale
of any junk or salvage vehicle or any severely damaged fleet vehicle
from an insurance company, a vehicle dismantler, a local authority,
fleet owner or a dealer registered under section four hundred fifteen of
this chapter provided the proof of ownership for such vehicle consists
of a valid statement of acquisition and such statement of acquisition
which transfers ownership of such vehicle indicates that the vehicle
identification number plate is missing, altered or defaced.

(c) No person shall sell or advertise for sale or solicit a bid for
the purchase of a junk or salvage vehicle without notifying any
prospective purchaser or bidder of the existence or non-existence of any
security interest with respect to such junk or salvage vehicle. If a
security interest exists with respect to such vehicle, the name or names
and address or addresses of the secured party or parties must also be
provided to the prospective purchaser or bidder.

3. Items to be surrendered before intentional destruction of motor
vehicles. A certified scrap processor or registered vehicle dismantler
may crush a motor vehicle still displaying a vehicle identification
number plate. The crushing must be so complete that the vehicle
identification number plate cannot be readily removed. No other person
shall cause or permit a motor vehicle to be scrapped, permanently
dismantled or otherwise intentionally destroyed unless the vehicle
identification number plate of such motor vehicle has been removed
therefrom and either destroyed or delivered to the commissioner together
with all title or any other ownership documents pertaining to such motor
vehicle as provided in this section. If the vehicle identification
number plate is not delivered to the commissioner, a notice indicating
the disposition of such plate must accompany the ownership documents
required to be submitted to the commissioner.

4. Forms and documents. Any forms or documents used in conjunction
with this section shall be in a form prescribed by the commissioner and
shall set forth a complete description of the motor vehicle, the name
and address of the person to whom such motor vehicle was sold or
transferred or from whom such motor vehicle was acquired together with
any other information deemed necessary or desirable by the commissioner
to effectuate the provisions and purposes of this section. Any such
statement, document or item required to be delivered to the commissioner
by any provision of this section shall be deemed to have been so
delivered when it has been either personally delivered or sent by mail
to the office of the commissioner at the address designated by him.

4-a. Fees for statement of acquisition. The statement of acquisition
provided for in this section shall be issued as prescribed by regulation
of the commissioner upon payment of a fee of five dollars for each such
statement. Such fee shall be paid to the commissioner for deposit in the
general fund.

5. Motor vehicle subject to requirements. The provisions of this
section shall apply to all motor vehicles sold, surrendered or otherwise
disposed of, or acquired, or intentionally destroyed, within this state
for which a certificate of title has been issued by the commissioner or
which would be eligible to have such a certificate of title issued.

6. Penalties. A violation of any provision of this section shall be a
misdemeanor.