Source: http://www.mvd.newmexico.gov/vehicle-procedures-manual.aspx?1f7fcb5548ee4e17a47ff4e27e571a01blogPostId=eedd031d43b1425c86c4a155cd74d50e
Timestamp: 2018-04-21 21:22:56
Document Index: 624929751

Matched Legal Cases: ['§ 48', '§48', '§66', '§48', '§ 48', '§48', '§ 48', '§48', '§66', '§66', '§48', '§ 48', '§48', '§66', '§66', '§66', '§66', '§66', '§66']

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Chapter 10 - Bonds and Liens
Section A. Types of Liens
Section B. Documents Required for Liens
Section C. Towing Lien Checklist
Section D. Mechanic’s, Storage or Landlord Lien Checklist
Section E. Abandoned Vehicle Lien Checklist
Section F. General Surety, Indemnity or Certificate of Title Bond
“Lien” defined (§§ 48-2-1, 66-1-4.10(E) and 66-12-3(L))
§48-2-1 of the Uniform Federal Lien Registration Act defines “lien” as a charge imposed upon specific property, by which it is made security for the performance of an act.
In the Motor Vehicle Code and the Boat Act “lien” is further defined to mean every chattel mortgage, conditional sales contract, lease, purchase lease, sales lease, contract, security interest under the Uniform Commercial Code or other instrument in writing having the effect of a mortgage or lien or encumbrance upon, or intended to hold, the title to any vehicle or boat in the former owner, possessor or grantor.
Titling through the Lien Process - Types of Liens
A person or company in the business of performing repair work may claim a “Mechanic’s Lien” on a vehicle when the owner fails to pick up the vehicle and pay authorized repair fees within a reasonable period of time.
The vehicle must be in New Mexico and in the lien claimant’s possession. If the lien claimant chooses to dispose of the vehicle (eight years and older) to a licensed dismantler, he need only provide the licensed dismantler with an NCIC Clearance. No further action is necessary. If the lien claimant chooses to sell the vehicle, or if the vehicle is not at least eight years old, the lien claimant must follow instructions on titling through the lien process.
The lien process on this type of lien starts when the account becomes due and payable, and applies only to New Mexico residents or businesses operating in New Mexico.
A person or company in the business of storage may claim a “Storage Lien” on a vehicle when the owner fails to pick up the vehicle and pay authorized storage fees within a reasonable period of time. The vehicle must be in New Mexico and in the lien claimant’s possession. If the lien claimant chooses to dispose of the vehicle (eight years and older) to a licensed dismantler he need only provide the licensed dismantler with an NCIC Clearance. No further action is necessary. If the lien claimant chooses to sell the vehicle, or if the vehicle is not at least eight years old, the lien claimant must follow instructions on titling through the lien process.
Abandoned Vehicle Lien
A person or company may claim an “Abandoned Vehicle Lien” on a vehicle that was abandoned on their property and left for an unreasonable period of time, generally at least 30 days. The vehicle must be in New Mexico and in the lien claimant’s possession. If the lien claimant chooses to dispose of the vehicle (eight years and older) to a licensed dismantler, he need only provide the licensed dismantler with an NCIC Clearance. No further action is necessary. If the lien claimant chooses to sell the vehicle, or if the vehicle is not at least eight years old, the lien claimant must follow instructions on titling through the lien process.
A person or company in the business of renting may claim a “Landlord’s Lien.” These liens are placed on a vehicle (including a mobile home or trailer) that has been placed in or upon the claimant’s business, when the owner fails to pay authorized rent fees including gas, water, electricity or other services within a reasonable period of time. The lien claimant may be the owner or operator of a rental dwelling, auto/trailer court or campground. The vehicle must be in New Mexico and in the lien claimant’s possession. If the lien claimant chooses to dispose of the vehicle (eight years and older) to a licensed dismantler, he need only provide the licensed dismantler with an NCIC Clearance. No further action is necessary. If the lien claimant chooses to sell the vehicle, or if the vehicle is not at least eight years old, the lien claimant must follow instructions on titling through the lien process.
Towing Lien
A person or company licensed in the business of towing by the New Mexico Public Regulation Commission (PRC) may claim a lien on a vehicle when the owner fails to pick up the vehicle and pay authorized towing and storage fees within a reasonable period of time. The vehicle must be in New Mexico and in the lien claimant’s possession. If the lien claimant chooses to dispose of the vehicle (eight years and older) to a licensed dismantler, he need only provide the licensed dismantler with an NCIC Clearance. No further action is necessary. If the lien claimant chooses to sell the vehicle, or if the vehicle is not at least eight years old, the lien claimant must follow instructions on titling through the lien process.
Documents Required for Titling Through the Lien Process
Effective July 1, 1996, New Mexico came under a cloak of confidentially (§66-2-7.1) as required by Federal mandate. As a result, the Motor Vehicle Division is prohibited from providing registered owners’ addresses and any personal information on record. A suppressed vehicle record printout may be provided.
However, lien claimants filing a “Towing Lien” are able to obtain Title verification without any of the registered owner’s information being suppressed.
If titling jurisdiction responds to a title verification request with a “NO RECORD” response, the lien claimant must submit the “No Record” documents and a completed copy of the “Notice of Mechanic’s or Landowner’s Lien” form (MVD-10058). Upon receipt of the NO RECORD response the lien claimant must advertise the vehicle for sale at public auction in a newspaper of general circulation in the county where the vehicle will be sold, once a week for two consecutive weeks, or post handbills.
If the vehicle has out-of-state license plates or the lien claimant has some other reason to believe that the vehicle is registered in a state other than New Mexico, he must request the same information from the appropriate agency of that state.
IF THE LIEN CLAIMANT IS UNABLE TO OBTAIN THE REGISTERED OWNER’S NAME AND ADDRESS, THE LIEN PROCESS CANNOT BE COMPLETED!
Unclaimed vehicle reports
§48-3-13. Enforcement of liens; optional methods.
A. In order to enforce any lien under §§ 48-3-1 through 48-3-20, the procedure shall be the same as in the case of the foreclosure of a chattel mortgage if suit is filed in court. The lien claimant when the property subject to the lien is under his control or in his possession may, after the debt for which the lien is claimed becomes due and payable, serve the person against whom the lien is sought to be enforced with a written notice or forward to the last known address of the person, by certified or registered mail, return receipt requested, a written statement, setting forth an itemized statement of the amount of the indebtedness. If the indebtedness is not paid within ten days after the service or mailing of the notice, the property may be advertised by posting or publication as provided in §48-3-14 and sold to satisfy the indebtedness.
B. Where the property involved is a motor vehicle upon which a lien exists under §§ 48-3-19 and 48-3-20, then in addition to the 10-day notice of the debt under this section and the 20-day notice of sale under §48-3-14, the motor vehicle shall be held for the following periods:
(1) for 14 days when the vehicle is registered in this state; or
(2) for 40 days when the vehicle is registered in a foreign jurisdiction or when the registration cannot be found in the records of this state.
C. Where the property on which the lien exists is a motor vehicle, the time periods referred to in Subsection B of this section are to be used for the purpose of establishing ownership and the names and addresses of lienholders so that they may be given notice of the sale. The time periods shall be in lieu of the time period referred to in §66-3-203, but the provisions of giving notice to the state police of unclaimed vehicles shall still apply, and the lien claimant shall give such notice within five days after the expiration of the 10-day notice period referred to in Subsection A of this section?.
(Per §66-3-203) An operator of a place of business for garaging, repairing, parking or storing vehicles for the public, in which a vehicle remains unclaimed for a period of 30 days, shall, within five days after the expiration of that period, report in writing to the New Mexico State Police at Santa Fe and the sheriff of the county in which the unit is stored, setting forth the make of car, model-year, and engine, serial and vehicle numbers of the vehicle unclaimed. A person who fails to report a vehicle as unclaimed in accord with this subsection forfeits all claims and liens for its parking or storing and is guilty of a misdemeanor punishable by a fine of not more than $25.00.
The lien claimant must complete the “Notice of Mechanic’s or Landowner’s Lien” form (MVD-10058). It must be sent by Certified or Registered Mail, Return Receipt Requested, to the registered owner, lien holder (if any) and all other parties involved, advising them of the amount due for services and allowing them 10 days to pay the accrued debt. Lien claimant must keep a copy of each notice that was mailed along with the certified or registered postmaster mail receipt and the return receipt (green card). The lien claimant will surrender these documents at the time of the Title Application.
Advertisement of Public Sale
The lien claimant must advertise the vehicle for sale if no one pays off the debt and recovers the vehicle within 10 days of notification. Advertising must be done in one of the following ways:
a. Posting of Handbills – A handbill is a sign which is 8” x 11.” Lien claimant must post six handbills in six conspicuous public locations in the county where the auction will be held; or
b. Advertising in a Newspaper – Advertisement must be done in a newspaper of general publication, in the county in which the vehicle will be sold, once a week for two consecutive weeks.
Handbills or advertisement must contain the following information: full description of vehicle; the amount due; time, date, location of sale; and why the vehicle is being sold at public auction. The handbills or advertisement must indicate the date that posting or advertising took place.
Note: Lien claimant must submit a sample of either the handbill or advertisement proof as part of the documentation for Title and Registration.
How to Determine the Date of Auction:
New Mexico Registered Vehicles
The date of auction may not be less than 44 days from the date indicated on the certified mail receipt or 34 days from the date handbills were posted. Example: 34 + 10 = 44, or 34 days from the last date of publication.
If Title verification indicates that the vehicle is from another licensing jurisdiction (out of state), the date of auction may not be less than 70 days from the date indicated on the certified mail receipt.
Title Verifications that Come Back with a “No Record” Response
Immediately upon receipt of the “No Record” response, the lien claimant must advertise the vehicle for sale at public auction in a newspaper of general circulation once a week for two consecutive weeks. The date of sale must be at least 60 days from the date of the second newspaper publication.
Affidavit of Resale
The “Affidavit of Resale” (MVD-10059) is a summary of the entire process. This form also includes an Odometer Mileage Statement and Assignment of Bill of Sale. After the auction has been completed, the lien claimant must complete the Affidavit of Resale form in its entirety. The lien claimant must sign the affidavit of resale.
a. When a person successfully bids for the vehicle, the lien claimant checks off the appropriate space and enters the purchaser’s name. Note: Purchaser must apply for a Title in their name and pay excise tax on purchase price, title and registration fee. Odometer disclosure must be made on the Affidavit of Resale form.
b. When no one bids for the vehicle or bids were unacceptable, the lien claimant shall check off the appropriate space and, apply for the title, and pay registration and title fees. NO TAX is applicable. Lien claimant CANNOT SELL the vehicle until they acquire a title in their name. Title must be transferred within 30 calendar days from date of auction or penalty will apply.
A certified VIN inspector must inspect the vehicle. The same VIN must appear on all required documents. When conducting an inspection of the Vehicle Identification Number, VISUALLY inspect the number and enter it on the Affidavit of V.I.N. (MVD-10861) and verify that it corresponds with all required documents.
Work Repair Order (Mechanic’s Lien Only)
The claimant must furnish the Motor Vehicle Division with a work repair order. The work repair order must itemize work performed and associated costs, with registered owner’s signature authorizing repairs.
Copy of the Order of Towing (Towing Lien Only)
The lien claimant must provide a copy of the towing order. It must indicate who gave authorization for the towing of the vehicle and other associated costs.
When all the supporting documents have been obtained and properly executed, the lien claimant or the person who has purchased the vehicle at the public sale must bring all supporting documents to a Motor Vehicle Division field office and apply for a vehicle Certificate of Title and registration. MVD field office personnel will begin the transaction with a vehicle record inquiry and review documents for final clearance. The vehicle record inquiry must indicate registered owner’s name as shown on Post Office Return Receipt for Certified Letter mailed to registered owner.
If owner reflected on vehicle inquiry does not match name(s) on the. supporting documents, clerk shall provide the lien claimant with the name of the registered owner of record. Lien claimant will have to start the process again by the notifying the owner of record. If all documents are in order, process the Application for Title and Registration. All required supporting documents must be included with your daily report.
If there is no buyer at the sale and the lien claimant buys the vehicle, the lien claimant must apply for title in his name within 30 days of the date of the public sale. Excise tax is not applicable. Dealers applying for title under these conditions must pay title and registration fees. If the dealer wants a “Title Only,” the application may indicate “Title Only,” but the registration fee must be paid.
A late transfer penalty applies for failure to execute transfer of title within 30 days from the date of the public sale. If the vehicle is operable, a late registration penalty applies for failure to execute transfer of title within 30 days from the date of the public sale. An excise tax penalty of 4.5% of the sale price will apply for failure to execute transfer of Title within 90 days from the date of the public sale.
All documents must be originals. Copies will not be accepted. Inspect each document and reject the application if there are any erasures, alterations, strikeovers, additions or other discrepancies.
Persons in the business of repair, towing, storage, rental dwellings, or on whose property an abandoned vehicle is left, CANNOT obtain title by surety bond process to circumvent the lien process.
Revised November 28, 2017
VIN # ___________________________________________________
1. Copy of towing order
Date and time of tow ________________________________________
The towing order must include the date and time of tow, vehicle information and (per 18.3.12.14 NMAC) towing authorization from either:
a law enforcement officer if the motor vehicle is abandoned on public property; or
if the motor vehicle is abandoned on private property, the property owner or his agent, together with the names of owner and agent (if any), the location of the private property, and the amount of time the motor vehicle has been on the private property.
2. Unclaimed vehicle reports
§48-3-13. Enforcement of liens; optional methods
A. In order to enforce any lien under §§ 48-3-1 through 48-3-20, the procedure shall be the same as in the case of the foreclosure of a chattel mortgage if suit is filed in court. The lien claimant when the property subject to the lien is under his control or in his possession may, after the debt for which the lien is claimed becomes due and payable, serve the person against whom the lien is sought to be enforced with a written notice or forward to the last known address of the person, by certified or registered mail, return receipt requested, a written statement, setting forth an itemized statement of the amount of the indebtedness. If the indebtedness is not paid within 10 days after the service or mailing of the notice, the property may be advertised by posting or publication as provided in §48-3-14 and sold to satisfy the indebtedness.
(2) for 40 days when the vehicle is registered in a foreign jurisdiction or where the registration cannot be found in the records of this state.
C. When the property on which the lien exists is a motor vehicle, the time periods referred to in Subsection B of this section are to be used for the purpose of establishing ownership and the names and addresses of lienholders so that they may be given notice of the sale. The time periods shall be in lieu of the time period referred to in §66-3-203, but the provisions of giving notice to the state police of unclaimed vehicles shall still apply, and the lien claimant shall give such notice within five days after the expiration of the ten-day notice period referred to in Subsection A of this section?.
3. Proof of NM registered owner
From MVD or MVD-contracted partner, request an official printout indicating the names and addresses of all lien holders and owners of record.
4. Proof of out-of-state registered owner
If the vehicle or motor vehicle has out-of-state license plates or the lien claimant has some other reason to believe that the vehicle or motor vehicle is registered in a state other than New Mexico, he must request the same information from the appropriate agency of that state.
5. Notice of Lien form (MVD-10058)
Date sent __________________________________
Completed form to be sent to registered owner, lien holder, and other interested parties advising the amount due for services, with certified postal receipt of the letter.
Copy of Notice of Lien form (MVD-10058) must be used as the document to show assessed fees. A document created by the towing company is not acceptable to replace MVD-10058.
6. Proof of mailing of the form MVD-10058
Mail receipt date: __________________________________
This must be either the certified mail receipt signed by the recipient or the original envelope and returned receipt (green card) returned by the Post Office if unable to deliver.
The tow lien processing agent will verify that name(s) and address(es) on the certified mail receipt match the registered owner information.
7. Advertisement of public sale (§?48-3-14) (part of Affidavit or Resale form, MVD-10059)
Date advertised __________________________________
There are two ways to advertise, handbills or newspaper.
?Post six handbills in six conspicuous public places in the county where the auction will be held. The handbills must be at least 8.5 x 11 inches in size and must include: a full description of the vehicle, including VIN, year, make and model; why it is being sold at public auction; the amount due; and the time, date and location of sale. A copy of the handbill must be included. Location of handbills must include a street address (i.e., 123 Main St., Belen, NM, 87104). Multiple vehicles may be placed on the same handbill.
An advertisement in a newspaper of general publication in the county where the auction will be held. ?The ad must be published at least one day a week for two consecutive weeks. The ad must include: a full description of the vehicle, including VIN, year, make and model; why it is being sold at public auction; the amount due; and the time, date and location of sale. A copy of the newspaper's bill/invoice or certification by the newspaper of publication of the ad must be included together with a copy of the ad.
8. Date of auction (part of Affidavit or Resale form, MVD-10059)
NM registered vehicles options
The date of the auction must be at least 44 days after the certified mail receipt date.
Mail receipt date; date on certified mail receipt __________________________________
Auction date __________________________________
The date of the auction must be at least 34 days after the handbill posting date.
Handbill posting date __________________________________
The date of the auction must be at least 34 days after the last date of publication of the advertisement.
Publication date __________________________________
Out-of-state registered vehicles
The date of the auction may not be less than 70 days from the mailing date indicated on the certified mail receipt.
Certified mail receipt date __________________________________
“No record” vehicles
The auction must be advertised in a newspaper of general publication and the date of sale must be at least 60 days from the date of the second newspaper publication.
Date of second newspaper publication __________________________________
9. Affidavit of Resale form MVD-10059
Date of vehicle resale __________________________________
Record the odometer mileage taken from the Affidavit of VIN and code as NM (not the actual mileage). If the owner of vehicle record is not available in this process the mileage cannot be verified by seller and buyer through the federally mandated Odometer Statement.
10. Affidavit of VIN Inspection form MVD-10861
Completed by certified VIN inspector (valid for 90 days). Odometer mileage must be entered as “NM” (not actual mileage) or, if the vehicle is 10 years old or older, as "EX" (exempt).
11. Title application
VIN, year, make, model and color.
Name and mailing address of new owner.
The “previous title number” field must state “Towing Lien”.
The “date of purchase” field should indicate the date of the auction.
Lien information if applicable (file date, maturity date, name and address of lien holder)
Applicant Certification must be signed and dated.
The vehicle must be titled to either the towing company or, if sold at auction, the buyer as listed on the Affidavit of Resale.
If the claimant (towing company) is selling the vehicle, the buyer must pay tax, title and registration fees.
If the claimant is titling in its own name, no excise tax is due, but title (or title and registration) fees apply.
The vehicle must be titled within 30 days of the date of auction or penalty fees will be added.
If the transaction is a title only, a $5.00 fee in a check or money order must be submitted with each transaction.
1. Unclaimed vehicle reports
(Per §66-3-203) An operator of a place of business for garaging, repairing, parking or storing vehicles for the public, in which a vehicle remains unclaimed for a period of 30 days, shall, within five days after the expiration of that period, report in writing to the New Mexico State Police at Santa Fe and the sheriff of the county in which the unit is stored, setting forth the make of car, model-year, and engine, serial and vehicle numbers of the vehicle unclaimed. A person who fails to report a vehicle as unclaimed in accord with this subsection forfeits all claims and liens for its parking or storing and is guilty of a misdemeanor punishable by a fine of not more than $25.
2. Proof of NM registered owner
3. Proof of out-of-state registered owner
4. Final proof of registered owner information
5. Notice of Lien form (MVD-10058)?
Copy of Notice of Lien form (MVD-10058) must be used as the document to show assessed fees. A document created by the claimant is not acceptable to replace MVD-10058.
Mail receipt date _________________________
This must be either the certified mail receipt(s) signed by the recipient(s) or a copy of the envelope/s and returned receipt (green card) returned by the Post Office if unable to deliver.
The lien processing agent will verify that name(s) and address(es) on the certified mail receipt match the registered owner information.
7. Advertisement of public sale (§?48-3-14) (part of Affidavit or Resale form, MVD-10059)?
Date advertised _____________________
There are two ways to advertise, handbills or newspaper
8. Date of auction (part of Affidavit or Resale form, MVD-10059)?
Auction date __________________________________ ??
Date of vehicle resale __________________
The form must be completed in its’ entirety.
Completed by certified VIN inspector (valid for 30 days). Odometer mileage must be entered as “NM” (not actual mileage) or, if the vehicle is 10 years old or older, as "EX" (exempt).
The “previous title number” field must state the type of lien.
Lien information if applicable (file date, maturity date, name and address of lien holder).
Applicant Certification must be signed and dated
The vehicle must be titled to either the mechanic, landlord or storage facility or, if sold at auction, the buyer as listed on the Affidavit of Resale.
If the claimant (mechanic, landlord or storage facility) is selling the vehicle, the buyer must pay tax, title and registration fees.
Abandoned Vehicle (§66-1-4.1(A))
An abandoned vehicle is one that has been determined by a New Mexico law enforcement agency: (1) to have been left unattended on either public or private property for at least thirty days; (2) not to have been reported stolen; (3) not to have been claimed by any person asserting ownership; and (4) not to have been shown by normal record-checking procedures to be owned by any person.
Alternatives to Abandoned Vehicle Lien Process (§66-3-121(A))
1. If the vehicle is towed
The towing company must obtain written authorization from the owner or agent of the property contained in a towing invoice with the following information:
Name of the owner or name of agent if different.
Amount of time vehicle is on the property (at least 30 days).
Date and time towing service removed the vehicle.
Follow the Towing Lien Process (Chapter 10 Section C)??
2. If the vehicle is at least eight years old or is totally wrecked or nonrepairable
Property owner obtains written clearance from a law enforcement agency stating that neither the agency’s records nor NCIC records indicate that the abandoned vehicle or motor vehicle has been reported as stolen.
The property owner may then sell the vehicle to a licensed motor vehicle dealer, wholesaler or recycler.
If the vehicle is wrecked/nonrepairable, it may only be sold to a recycler/dismantler.??
3. Otherwise:
If the vehicle is less than eight years of age or in such a state of repair that it will be placed back into service, or if the property owner wishes to retain it for his own use or to sell it to anyone other than a licensed dismantler, the property owner must proceed to make claim for the vehicle through the abandoned vehicle lien process, following the procedure below, and obtain a new certificate of title prior to disposal.
Abandoned Vehicle Lien on Private Property Checklist
1. Proof of NM registered owner
2. Proof of out-of-state registered owner
3. Final proof of registered owner information
4. Notice of Lien form (MVD-10058)?
5. Proof of mailing of the form MVD-10058
6. Advertisement of public sale (§?48-3-14) (part of Affidavit or Resale form, MVD-10059)?
7. Date of auction (part of Affidavit or Resale form, MVD-10059)?
8. Affidavit of Resale form MVD-10059
9. Affidavit of VIN Inspection form MVD-10861
10. Title application
The vehicle must be titled to the property owner (claimant) or, if sold at auction, the buyer as listed on the Affidavit of Resale.
If the claimant (property owner) is selling the vehicle, the buyer must pay tax, title and registration fees.
General Surety, Indemnity or Certificate of Title Bond
A general surety bond, indemnity bond or certificate of title bond may be used when no title or other supporting documents which are necessary to process the title application are available.
However, the bonding process may not supersede any type of lien process (tow, mechanic, storage, landowner, abandoned vehicle). If there are no supporting documents to show ownership, and a lien process is available, titling must be through the lien process
Statutory Basis for Surety Bond Process (§66-3-24(C))
§66-3-24(C) provides that (emphasis added):
In the absence of the regularly required supporting evidence of ownership, upon application for Certificate of Title, registration or transfer of a boat required to be titled under the provisions of the Boat Act or a vehicle, the division may accept an undertaking or surety bond, in an amount double the value of the boat or vehicle, which shall be conditioned to protect the department and all officers and employees of the department and any subsequent purchaser of the boat or vehicle, any person holding or acquiring a lien or security interest on the boat or vehicle or the successor in interest of the purchaser or person against any loss or damage on account of any defect in or undisclosed claim upon the right, title and interest of the applicant or other person in and to the boat or vehicle. The bond shall run to the true owner or the lien holder. The bond shall expire three years after the date it became effective.
A. Surety Bond Requirements
The applicant must submit to the Motor Vehicle Division (MVD) Dealer Licensing Bureau (DLB) an application packet that includes:
Completed Application for General Surety Indemnity or Certificate of Title Bond Form (MVD-10070)
POA, if applicable (if application made by a licensed MVD partner or TSC)
If completed by Power of Attorney (POA), provide the customer’s phone number & email address and POA’s contact information.
Completed Affidavit of VIN Form (MVD-10861)
Supporting Documentation, if applicable (bill of sale, title with cross outs, etc.)
Tax Release (for mobile homes)
Surety, Indemnity or Certificate of Title Bond (see details in section B below)
For New Mexico residents, a copy of a valid DL or ID
For applicants without a New Mexico DL or ID, two proofs of residency
(the same two documents that would be required to prove residency for a Real ID driver’s license or identification card, as specified in the Drivers Manual Chapter 6 Section A )
The application packet should be mailed to:
Motor Vehicle Division-Dealer Licensing Bureau
Attn: Surety Bonds
505 Marquette NW Suite 1501Albuquerque NM 87102
Inquiries can be emailed to Surety.Bond@state.nm.us
B. General Surety, Indemnity or Certificate of Title Bond
The applicant must purchase the bond from a bonding company authorized to do business in New Mexico.
The bond must be for twice the value of the vehicle and issued for a term not to expire for three years after issuance. The value of the vehicle for bonding purposes must be comparable to the most recent NADA Average trade-in or NADA wholesale value. For classic cars, the NADA low retail value may be used. Mobile home value can be determined by assessed value (from Tax Release).
The Vehicle Identification Number (VIN) on the completed application and VIN Inspection (MVD-10861) must all correspond with the one on the bond.
The bond must be a General Surety Bond, Indemnity Bond or Certificate of Title Bond and must indicate that it covers all documents used to support issuance of the Title.
The bond must state:
a. Where the Bond Company is organized (parent company).
b. That the bonding company is authorized to conduct business in New Mexico, and that they are authorized to transact surety bonds.
c. That the bonding company will be responsible for all liabilities that might be incurred because of the issuance of title, based on the bond and will hold the Motor Vehicle Division, or its employees, harmless against any loss or damage from any action taken against the bond.
d. That the bond will run three consecutive years.
e. The value of the bond.
f. Bond must be in the applicant’s name and signed by applicant.
g. VIN, Make, Model and year of the vehicle.
C. How the process works
The DLB will review and approve or deny the surety bond application using the following criteria:
Is the application packet complete (signed and dated)?
Is the bond issued by a company authorized to conduct business in New Mexico?
Is the bond valid and for the proper value?
Is there a New Mexico record?
If there is a New Mexico record, flag the record with “surety bond process.”
If there is no New Mexico record, create one and flag it with “surety bond process.”
Is there a current title in the National Motor Vehicle Title Information System (NMVTIS) that lists an owner and/or lienholder?
Are there any other parties that might have an interest in the vehicle?
Is there an identified owner, lienholder or interested party?
If yes, DLB will:
notify them by letter of the surety bond application; and
give them an opportunity to state their interest within 30 days of the date of the letter.
If no, DLB will:
notify the surety bond applicant by letter or email that the application has been approved;
provide a list of required documents to complete the title transfer transaction;
notify him that the motor vehicle excise tax (MVET) is 3% of the value of the vehicle if application for title is completed within 90 days or surety bond application approval or 4.5% if completed after 90 days; and
direct him to a field office to complete the transaction.
Has an owner, lienholder or interested party expressed interest in the vehicle within 30 days of the date of the notification letter?
notify the surety bond applicant of the interested party/ies; and
notify the surety bond applicant of the need to secure a release of lien or interest in order to continue the process.
If no, DLB will approve and release for titling.
Has the surety bond applicant provided a release of lien or interest from an owner, lienholder or interested party?
All Surety Bonds will be entered, tracked and completed within Tapestry.
2. Customer will present the email or letter from DLB and all other required documents to an MVD customer service representative to process the title transfer.
3. The customer service representative (CSR) at an MVD field office, partner office or municipal office will:
Process the title transfer;
Collect the motor vehicle excise tax (MVET);
The Application for Title MUST be made within 90 days from the date of issuance of the bond or the excise tax will increase from 3% of the value of the vehicle to 4.5%.
Issue a title;
Collect registration fees, if applicable; and
Issue a registration, if applicable.
All documents must be original documents; copies will not be accepted.
Inspect documents for erasures, alterations, strikeovers, whiteouts, additions or any other discrepancies.
Capture the odometer on the vehicle and enter “NM” (not the actual mileage).
All Brands (from other states) will remain.
Junk brands/non-repairable/destruction will not be titled in New Mexico.
Vehicles requiring a safety inspection from the last titled state (Massachusetts, Illinois, etc.) must provide a safety inspection from that state.
Process will take no fewer than 30 days from receipt in the Dealer Licensing Bureau.
Any additional fee charged by another state for last known owner record will be the responsibility of the applicant to obtain.
If the 50-state check shows that New Mexico is the state of record for this vehicle we know that we will not provide the address. Therefore the 50-state check along with the no-record from NM should be sufficient proof that the applicant attempted to locate and notify the registered owner. That is the purpose of the bond, to protect the Division in issuing a title when all required documents are not available.
If the 50-state check reveals a registered owner, the applicant will be given the state of record. It will be his responsibility to notify the state and attempt to get an address. The applicant will submit the response from the other state's DMV to verify the attempt.
If the address was not provided, we should proceed with this verification of attempt. If the address is known, the applicant should attempt to notify the owner. As long as the applicant has attempted to locate the owner and notify we should proceed. That is the purpose of the bond, to protect the Division in issuing a title when all required documents are not available.