2023 New York Laws › VAT - Vehicle and Traffic › Title 4 - Registration of Vehicles › Article 17 - Other Provisions Relating to Registration and Possession › 429 - Junk and Salvage Vehicles.

§ 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.