Section 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.
    (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.