Sec. 81.8. Procedures upon acquisition or transfer of junk and salvage vehicles

(a) Requirements upon acquisition of junk and salvage vehicles.

(1) Except as provided in paragraph (8) of this subdivision whenever a person acquires a junk and salvage vehicle, other than by receiving a properly endorsed MV-907A (transfer copy), such person shall properly complete an MV-907A in accordance with the instructions on the form and submit the DMV copy to the Department of Motor Vehicles within 15 business days of the date such vehicle was acquired, together with the title certificate or other proof of ownership for such vehicle. If the title certificate indicates there is a lien or liens on the vehicle, and if any such lien or liens are satisfied, “Satisfaction of Lien,” form MV-901 should also be submitted. The person who acquired the junk and salvage vehicle retains the other two parts of form MV-907A. The transfer copy serves as proof of ownership for the vehicle and may be used to transfer the vehicle. This subdivision does not apply to scrap processors.

(2) The requirement for completing an MV-907A shall not apply to a person who acquires a junk and salvage vehicle by receiving a properly endorsed MV-907A (transfer copy) unless and until such person is ready to transfer the entire vehicle. Such MV-907A (transfer copy) shall be proof of ownership for such vehicle.

(3) Scrap processors. A scrap processor who acquires a junk and salvage vehicle shall follow the procedure set forth in this subdivision, except that a scrap processor shall not purchase any material which may have been a vehicle or a major component part of a vehicle, if recognizable as such, from any person other than a dealer registered pursuant to section 415 of the Vehicle and Traffic Law, an insurance company, a governmental agency, a manufacturer of motor vehicles, a person in whose name a certificate of title or other ownership document has been issued for such vehicle, a person alleging ownership and utilizing form MV-35, signed and properly completed, for a vehicle at least eight model years old and worth $750 or less, or a person registered or certified or issued an identification number pursuant to this Part. This restriction shall not apply to a major component part included in a mixed load, which is a load consisting of more than 50 percent nonvehicular scrap. A scrap processor must take possession of any certificate of title or form MV-35 used as proof of ownership of a vehicle the scrap processor is buying. The scrap processor must send certificates of title and completed forms MV-35 to the Department of Motor Vehicles within 15 days.

(4) Insurance companies. If an insurance company is required to file an MV-907A, either an appraisal report or two pictures of the vehicle, taken from two different points, showing the major damage to the vehicle, if any, shall be filed with the DMV copy of the MV-907A. This provision shall not apply to an MV-907A filed with respect to an unrecovered stolen vehicle. If an out-of-state insurance company uses an adjustor in New York to settle a total loss claim, then the adjustor shall file form MV-907A. If an insurance company authorizes a salvage pool or a vehicle dismantler to possess a vehicle, but is unable to promptly deliver the MV-907A for that vehicle, it shall deliver or mail within four days a written document authorizing the salvage pool or vehicle dismantler to possess the vehicle. The written document must identify the vehicle by year, make, vehicle identification number and, if appropriate, insurance company file number. More than one vehicle may be identified on a single letter or other written document.

(5) Salvage pools. A salvage pool may retain possession of a salvage vehicle without proper proof of ownership if it is awaiting a certificate of title or an MV-907A from an insurance company. Within five days of receipt of a vehicle without its proof of ownership, a salvage pool shall receive from an insurance company a letter or other written document authorizing the salvage pool to possess the vehicle. The letter or other written document must identify the vehicle by year, make, vehicle identification number and, if appropriate, insurance company file number. More than one vehicle may be identified on a single letter or other written document. A salvage pool shall not transfer any vehicle except by use of a properly completed MV-907A.

(6) Vehicle dismantlers. A vehicle dismantler may retain possession of a salvage vehicle without proper proof of ownership if it is awaiting a salvage certificate (form MV-907A) from an insurance company. Within five days of receipt of a vehicle without its proof of ownership, a vehicle dismantler shall receive from an insurance company a letter or other written document authorizing the vehicle dismantler to possess the vehicle. The letter or other written document must identify the vehicle by year, make, vehicle identification number and, if appropriate, the insurance company file number. More than one vehicle may be identified on a single letter or other written document. A vehicle dismantler shall not remove any parts, whether major component parts or not, from a salvage vehicle until it has proper proof of ownership for that vehicle.

(7) Self-insured.

(i) The commissioner shall provide a supply of salvage certificates (form MV-907A) to a self-insured fleet operator at no charge. When a vehicle in the fleet becomes a severely damaged fleet vehicle, the fleet operator shall complete the salvage certificate and mail copy two of it together with the title to the vehicle to the address shown on the form.

(ii) Failure to safeguard salvage certificates or failure to properly complete and mail a salvage certificate when required to do so may result in the commissioner revoking a fleet operator's privilege of being self-insured.

(8) A vehicle dismantler, within 15 days after acquiring a motor vehicle or trailer, must determine whether or not the vehicle will be sold to a scrap processor. If the vehicle is to be sold to a scrap processor, a salvage certificate (form MV-907A) is not required. Instead, the vehicle is entered in the Book of Registry and on a Multiple Entry Form for Salvage Vehicles (form MV-907M), to which the proof of ownership for the vehicle must be attached. No later than the last day of each month, the form must be mailed to the address shown on the form.

(b) Requirements upon transfer of a junk and salvage vehicle.

(1) By a person who has submitted a properly completed MV-907A (DMV copy) to the Department of Motor Vehicles. A person who has filed form MV-907A with the Department of Motor Vehicles may transfer such vehicle by delivering the corresponding and properly completed MV-907A (transfer copy) to the buyer.

(2) By a person whose proof of ownership consists of a properly completed MV-907A (transfer copy). A person whose proof of ownership consists of an MV-907A (transfer copy) which had been delivered to him when he acquired the vehicle may not use such MV-907A to transfer the vehicle. Such a person must complete a new MV-907A and attach the transfer copy of the new MV-907A to the one or more transfer copies he has received. All the transfer copies are to be kept together, in chronological order, with the oldest on the bottom, and given to the purchaser of the vehicle. A purchaser is responsible for determining that a complete chain of ownership for the vehicle being purchased exists.