Sec. 78.4. New motor vehicle dealer provisional registration

(a) A new motor vehicle dealer may apply for a new motor dealer provisional registration (hereinafter referred to as provisional registration). The application for a provisional registration shall be filed in such form and detail as the commissioner shall prescribe, and shall be filed concurrently with the original application for a new motor vehicle dealer registration. If an application for a provisional registration is denied, the applicant shall not be entitled to an appeal or hearing regarding the denial.

(b) The holder of a provisional registration shall be granted the same rights and privileges as are granted to the holder of a new motor vehicle dealer registration, except that the commissioner may suspend a provisional registration for the same reasons that a dealer registration is subject to suspension for a violation or violations of this Part or of section 415 of the Vehicle And Traffic Law. If the provisional registration is suspended pursuant to the provisions of this subdivision, the commissioner shall provide the provisional registrant with actual notice of the suspension at least seven calendar days prior to the effective date. The holder of the provisional registration shall not be entitled to an appeal or hearing if such provisional registration is suspended. The holder of a provisional registration shall be subject to the same rules and regulations that apply to the holder of a new motor vehicle dealer registration, except if such rules and regulations are inconsistent with the provisions of this section.

(c) The holder of a provisional registration who has purchased or acquired, or who plans to purchase or acquire, the place of business from a registered new motor vehicle dealer:

(1) shall not sell or transfer a vehicle unless it has in its possession a proof of ownership or transfer document in its name;

(2) shall not engage in business in the name of the selling or transferring new motor vehicle dealer registration;

(3) shall not use any dealer plate, dealer issued plate, or unused certificate of sale that had been issued to the selling or transferring registered new motor vehicle dealer by the department;

(4) shall display the provisional registration in a conspicuous manner.

(d) If a new motor vehicle dealer with a provisional registration purchases or acquires a place of business from a registered new motor vehicle dealer, then within 30 business days of the issuance of the provisional registration, the dealer must ensure that:

(1) a certificate of sale is issued transferring ownership of all vehicles included in the sale or transfer; and

(2) the new motor vehicle dealer registration, all dealer plates, dealer issued plates, and unused certificates of sale that had been issued to the selling or transferring dealer are surrendered to the department or are accounted for.

(e) If the commissioner has suspended a provisional registration, or if a provisional registration has expired, and the dealer that held such provisional registration has not obtained a valid new motor vehicle dealer registration, then all dealer business operations at that location shall immediately cease, and the dealer shall surrender the provisional registration, all dealer plates, and all certificates of sale to the department.

(f) The holder of a provisional dealer registration must provide to the department within 30 days of the issuance of the provisional registration all information necessary for review of the dealer registration application and all required documentation relative to the sale and transfer of the business.

(g) The provisional dealer registration shall expire 60 days from the date of issuance of such registration or when the department completes its investigation related to the application for a new motor vehicle registration, whichever is later.

(h) The holder of a provisional dealer registration must notify the department immediately if the opening of the dealership is cancelled and such holder must return all supplies within 10 days.