An Act To Amend the Motor Vehicle Laws
Maine Legislature, Session 121, LD 1233
Committee: Transportation
Sponsors: McKENNEY, COLLINS, MURPHY
Amends: 10 MRSA §1475, 29-A MRSA §705, 29-A MRSA §706

Legislative Document 
No. 1233 
H.P.907 
House of Representatives, March 6, 2003 
An Act To Amend the Motor Vehicle Laws 
Reference to the Committee on Transportation suggested and ordered printed. 
Presented by Representative McKENNEY of Cumberland. 
/Jl~ 
1?1.11l0£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: COLLINS of Wells, MURPHY of Kennebunk. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10 MRSA §1475, sub-§3~ as amended by PL 1999, c. 617, 
§l, is further amended to read: 
3. 
Written statement. A dealer shall obtain from the seller 
of 
a 
used 
motor 
vehicle 
a 
written statement containing the 
following information: 
A. 
The make, model, model year and any identification or 
serial numbers of the motor vehicle; 
B. 
The name and address of the seller, the 
which the motor vehicle was put by the 
personal transportation, police car, daily 
or other descriptive term; 
principal use to 
seller, such as 
rental car, taxi 
C. 
A statement identifying any and all mechanical defects 
known to the seller at the time of sale; and 
D. 
A statement identifying the type of damage, if any, that 
the 
vehicle 
has 
sustained, 
such 
as 
fire, 
water 
or 
substantial collision damage, if such information is known 
to the seller. 
Any dealer who offers for sale to consumers a repossessed vehicle 
that has been obtained by the dealer through any transaction 
other than a retail sale is not subject to the provisions of this 
subsection. 
Any dealer who offers for sale to consumers a used motor vehicle 
is not subject to the provisions of this subsection for a motor 
vehicle that has been obtained by the dealer through an auction 
located outside the State at which buyers are limited to licensed 
dealers and the seller of the used motor vehicle is neither a 
resident of this State nor a dealer licensed in this State. 
The seller of the used motor vehicle shall sign and date this 
written statement and the dealer who 
buys 
the vehicle shall 
maintain a record of it for 2 years following the sale of the 
motor vehicle. 
As 
used in subsection 
2-A 
and this subsection, 
"substantial 
collision damage" means any damage to a motor vehicle from a 
collision when the costs of repair of that damage, at the time of 
repair, 
including 
replacement 
of 
mechanical 
and 
body 
parts, 
exceed $2,000. 
Sec. 2. 29-A MRSA §705, sub-§ 1, as amended by PL 1997, c. 776, 
§27, is further amended to read: 
Page l-LR1255 (1) 
1. 
Release 
on satisfaction. 
Upon 
satisfaction of 
the 
security interest of the lienholder, the lienholder shall, within 
days 
a~~eF-semaBs of receipt of funds intended to satisfy the 
security interest of the lienholder, execute a release of the 
security interest in the space provided on the certificate. 
The 
lienholder shall: 
A. 
Release the certificate of title, certificate of salvage 
or certificate of lien to the subordinate lienholder if one 
is named; 
B. 
If the lien was satisfied in 
of 
the 
vehicle 
and 
there is 
no 
release and deliver the certificate 
conjunction with the sale 
subordinate lienholder, 
of title, certificate of 
salvage or certificate of lien to the owner or to a person 
who delivers to the lienholder an authorization from the 
owner to receive the certificate; or 
C. 
Deliver the certificate to the owner 
and notify the 
Secretary of State that the lien has been satisfied. 
Sec. 3. 29-A MRSA §705. sub-§4. as enacted by PL 2001, c. 671, 
§16, is amended to read: 
4. 
Remedies. 
The remedies set forth in this section are in 
addition to those set forth in section 668. 
A. 
The 
owner 
and 
subordinate 
lienholder, 
if 
any, 
may 
recover $§GG $1,000 in each case from a lienholder who fails 
to release and deliver the security interest within 14 days 
aEt.e£-4effiaBs of receipt of funds intended to satisfy the 
security interest of 
the 
lienholder 
under 
this 
section, 
unless, 
within 
the 
14-day 
time 
period, 
the 
lienholder 
notifies 
the 
owner 
that 
satisfaction 
of 
the 
security 
interest is in dispute. 
B. 
If 
a 
lienholder 
fails 
to 
release 
and 
deliver 
the 
security interest within 14 days after demand under this 
section and has not notified the owner that satisfaction of 
the security interest is in dispute, the Secretary of State 
may revoke the certificate of title, certificate of lien or 
certificate of salvage and issue a replacement certificate 
omitting the security interest upon receipt of a statement 
by the owner that 14 days have elapsed since demand for 
release of the security interest was made and the owner has 
not been notified by the lienholder that satisfaction of the 
security interest is in dispute. 
Submission of 
a 
false 
statement to the Secretary of State under this subsection is 
a Class E crime. 
Sec. 4. 29-A MRSA §706, as enacted by PL 1993, c. 683, Pt. A, 
§2 and affected by Pt. B, §5, is amended to read: 
§106. Lienholder to furnish information 
Upon request of the 
certificate of title or 
which 
the 
vehicle 
has 
owner, another lienholder named on the 
certificate of salvage or a dealer to 
been 
transferred, 
a 
lienholder 
shall 
disclose all pertinent information as to the security agreement, 
the indebtedness secured by that agreement, 
the existence and 
identity of subordinate lienholders and the certificate of title 
or certificate of salvage numbers. 
SUMMARY 
This bill exempts 
used motor vehicle dealers who 
obtain 
motor 
vehicles 
at 
an 
auction 
outside 
the 
State 
from 
the 
requirement that they obtain from the sellers of those vehicles a 
written statement that includes information such as identifying 
information regarding the vehicles, the name and address of the 
seller, the principal use of the vehicles and the type of damage, 
if any, that the vehicles have sustained, such as fire, water or 
substantial collision damage. 
This bill provides 
for 
timely delivery of 
documentation 
necessary for the transfer of title to motor vehicles. 
This bill also allows a motor vehicle dealer to obtain all 
pertinent information about existing liens on a vehicle that a 
customer wants to trade in toward the purchase of another vehicle.