Pursuant to authority given the Director of the Department of Finance
and Administration by section 7 of Act 614 of 1993 and act 620 of 1995, after
the effective date of this regulation, owner of a DAMAGED MOTOR VEHICLE must
meet the requirements of this regulation for the purposes of placing a brand on
the face of the certificate of title denoting such damage, and denoting the
previous damage if the vehicle is subsequently sold, repaired or
retitled.
1) Definition:
(A) "Commissioner" means the Commissioner of
Revenues for the Department of Finance and Administration.
(B) "Dealer" means any person or business who
sells or offers for sale a motor vehicle after selling or offering for sale
five (5) or more motor vehicles in the previous twelve (12) months, or who is a
new or used motor vehicle dealer licensed by or with the State of Arkansas.
Persons or businesses that operate as salvage vehicle pools or salvage vehicle
auctions are not considered to be "dealers" under the provisions of this
regulation when selling vehicle parts to a dealer.
(C) "Owner" means an individual, insurance
company or other entity with legal title to a motor vehicle subject to the
provisions of this regulation.
(D)
"Repairer or Rebuilder" means any person, firm or entity that engages in the
repairing, rebuilding or reconstructing of any damaged motor vehicle, as
defined in this regulation, whether or not such activity is for
profit.
(E) "Motor vehicle" means
every self-propelled vehicle, upon or by which any person or property is or may
be transported upon a street or highway. Such definition shall exclude:
(i) motorcycles, motor-driven cycles, and
trucks with an unladen weight of 10,000 pounds or more;
(ii) any motor vehicle that has been damaged
to the extent that it is considered junk under the provisions of Ark. Code Ann.
§§
27-14-913,
or for which an Akansas permit to dismantle or an out-of-state junking
certificate has been issued;
(iii)
any motor vehicle that is more than five (5) model years old. (Using the
current calendar year and subtracting five (5) determines the latest model year
excluded.)
(F) "Water
damage" means damage to a motor vehicle caused by submerging or partially
submerging the vehicle in water to the extent that the vehicle was submerged or
partially submerged at any water level above the dashboard of the vehicle,
regardless of the actual dollar amount of the damage.
(G) "Damaged motor vehicle" means a motor
vehicle, as defined in this regulation, that has received:
(i) physical damage that equals or exceeds
seventy percent (70%) of the vehicle's average retail value, as listed in the
most current issue of any pricing guide that may be approved by the
Commissioner for use in determining the percentage of such damage; or
(ii) water damage, as defined in this
section.
(H) "Rebuilt or
Reconstructed motor vehicle" means a motor vehicle for which a Damaged title,
or similar certificate of title issued by another state, has been previously
issued, and such motor vehicle has been repaired to the extent that it can be
licensed for use on the public streets and highways of this state.
(I) "Damaged title" means an Arkansas
certificate of title issued to the owner of a damaged motor vehicle, as defined
in this regulation, that bears the notation "DAMAGED" in the remarks section on
its face.
(J) "Previous Damage
title" means an Arkansas certificate of title issued to the owner of a rebuilt
or reconstructed motor vehicle, as defined in this regulation, bearing the
notation "PREVIOUS DAMAGE" in the remarks section on its face.
K) "Declaration of Damage To a Motor Vehicle"
means a form, prescribed by the Commissioner, which shall be completed by the
owner of a damaged motor vehicle and surrendered to the Commissioner when
making application for registration and issuance of a Damaged title.
(L) "Affidavit of Reconstruction For A
Damaged Motor Vehicle" means a form, prescribed by the Commissioner, which
shall be completed by a repairer or rebuilder upon his completion of the
rebuilding or reconstruction of a damaged motor vehicle, and surrendered to the
Commissioner by the owner of such rebuilt or reconstructed motor vehicle when
making application for registration and issuance of a Previous Damage
title.
2) After the
effective date of this regulation any owner of a motor vehicle which sustains
physical damage or water damage to the extent that it is a "damaged motor
vehicle" shall surrender to the Commissioner the existing certificate of title
to such motor vehicle accompanied by the following:
(A) either:
(i) a completed Declaration of Damage
(attachment #1) describing the damaged motor vehicle and reflecting the extent
of damage; or,
(ii) a copy of the
insuring company's total loss report, if such report has been approved by the
Commissioner, in writing, for use as a substitute for the Declaration of
Damage;
(B) an
application for registration and issuance of a certificate of title to the
vehicle signed by the vehicle owner;
(C) any additional documentation otherwise
necessary to comply with specific statutory requirements for registration and
issuance of a certificate of title to a vehicle;
(D) the payment of all requisite fees and
taxes for the registration and issuance of a Damaged title.
3) Upon receipt of the certificate
of title and accompanying documents listed in paragraph 2) above, the
Commissioner shall cause to be issued to the owner a new certificate of title
bearing the notation "DAMAGED" in the remarks section on its face . Such
registration and issuance of a Damaged title shall be for proof of ownership
only, and the damaged motor vehicle shall not be operated on the streets or
highways of this state until it meets the requirements set forth in paragraph
5) of this regulation.
4) When any
motor vehicle for which a Damaged title has been issued (or for which a
similarly branded or designated title has been issued by another state) is
rebuilt or reconstructed, the repairer or rebuilder shall complete and deliver
to the owner a signed Affidavit Of Reconstruction For A Damaged Motor Vehicle
(attachment #2) fully disclosing the repairs made to the rebuilt or
reconstructed motor vehicle, listing all parts and components that were
repaired or replaced. The owner, or repairer or rebuilder if he is the owner,
shall acknowledge receipt of the Affidavit Of Reconstruction For A Damaged
Motor Vehicle by signing it in the space provided for the owner's
signature.
5) The owner, or
repairer or rebuilder if he is the owner, of a damaged motor vehicle that has
been repaired or reconstructed shall surrender to the Commissioner the existing
Damaged title to the repaired or reconstructed motor vehicle, accompanied by:
(A) the completed Affidavit Of Reconstruction
For A Damaged Motor Vehicle required by paragraph 4) above;
(B) an application for registration and
issuance of a certificate of title to the vehicle signed by the vehicle
owner;
(C) any additional
documentation otherwise necessary to comply with specific statutory
requirements for registration and issuance of a certificate of title to a
vehicle;
(D) the payment of all
requisite fees and taxes for the registration and issuance of a Previous Damage
title.
6) Upon receipt
of the Damaged title and accompanying documents listed in paragraph 5) above,
the Commissioner shall cause to be issued to the owner a new certificate of
title bearing the notation "PREVIOUS DAMAGE" in the remarks section on its
face. Such notation shall be carried forward and printed on the face of all
subsequent titles issued for such repaired or reconstructed motor
vehicle.
7) All documents
surrendered to the Commissioner for issuance of a Damaged title or a Previous
Damage title to a motor vehicle shall be made part of the permanent records of
ownership of such motor vehicle, and shall be made available for public
inspection upon request.
8) In
accordance with Section 6. of Act 614 of 1993, persons licensed by the State of
Arkansas as dealers in motor vehicles shall not be required to pay gross
receipts taxes or compensating use taxes on any motor vehicle they are required
to register and title in accordance with this regulation.
9) Any motor vehicle that has been damaged to
the extent that it is considered junk under the provisions of Ark. Code
Ann.§§
27-14-913
and for which an Arkansas permit to dismantle has been issued, or for which a
junking certificate has been issued by another state, shall not be registered
or titled in the State of Arkansas for any purposes.
10) Any Insurance company licensed to do
business in the State of '■ Arkansas who obtains possession of a
motor vehicle as the result of settlement of an insurance claim, and such motor
vehicle has not sustained sufficient damage to require the issuance of a
Damaged title, or is excluded from meeting the definition of a motor vehicle by
virtue of its age [paragraph 1) (E) (iii) of this regulation] , may dispose of
the motor vehicle by reassigning the existing certificate of title assigned to
the insurance company by the insured owner, and shall not be required to apply
for registration and issuance of a title in the name of the insurance
company.
11) Dealers in motor
vehicles offering for sale any motor vehicle for which a Previous Damage
certificate of title has been issued shall display in a side window of the
vehicle a buyer's notification form, as prescribed by the Consumer Protection
Division of the Office of the Attorney General, disclosing the nature of the
brand on the certificate of title and a description of the damage sustained by
the motor vehicle, as reflected on the records maintained by the Commissioner
under the provisions of paragraph 7) of this regulation,
12) An owner of a motor vehicle who knowingly
offers for sale or trade any motor vehicle for which a Previous Damage
certificate of title has been issued shall furnish, prior to sale or trade to
any prospective buyer, on a buyers notification form prescribed by the Consumer
Protection Division of the Office of the Attorney General, the nature of the
brand on the certificate of title and a description of the damage sustained by
the motor vehicle as reflected on the records maintained by the Commissioner
under the provisions of paragraph 7) of this regulation.
13) The buyers notification form shall be
properly completed and signed by the buyer, prior to the time of sale, and a
signed copy retained by the owner. Failure of the owner or dealer to procure
the buyers signature on the buyers notification form shall render the sale
voidable at the election of the buyer any time within thirty (30) days after
the date of the sale transaction.
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