1 CCR 204-10-19 - BONDING FOR COLORADO CERTIFICATE OF TITLE
Basis: The statutory bases for this rule are 42-6-104, 42-6-107(1)(b), 42-6-115, 42-6-116, and 42-6-117, C.R.S.
Purpose: The purpose of this rule is to clarify documents required and processes for bonding for a Colorado certificate of title when satisfactory evidence of vehicle proof of ownership cannot be provided by an applicant.
1.0
Definitions
1.1
"Certified VIN Inspection" means a vehicle identification number (VIN)
inspection conducted by a Peace Officers Standards and Training (P.O.S.T.)
certified inspector completed on forms provided by the Department.
1.2 "Secure Form" means a form produced
through a secure printing process or other secure process which deters
counterfeiting and/or unauthorized reproduction and allows alterations to be
visible to the naked eye.
2.0
Bonding for Title
2.1
An applicant that is unable to provide satisfactory evidence of proof of
ownership of a vehicle pursuant to Code of Colorado Regulation 1 CCR 204-10
Rule 18, Satisfactory Evidence Of Vehicle Ownership, shall be required to
perform the bonding for title requirements listed in 42-6-115, C.R.S., in order
to obtain a Colorado certificate of title.
2.2 A Colorado certificate of title will be
issued upon successful completion of the requirements listed in 42-6-115,
C.R.S., and this rule. The applicant must:
a.
Provide a Certified VIN Inspection. The Certified VIN Inspection must not be
over one year old at the time of bonding for title application.
b. Obtain and provide a title record search.
The title record search may not be older than one-year from the date of bonding
for title application; and
i. Vehicles titled
and registered in the State of Colorado must have a Colorado title record
search completed using form DR2489A Motor Vehicle Requestor Release Affidavit
Of Intended Use or via the myDMV "Request Vehicle Record/Title History Search"
transaction option.
ii. If no
Colorado record is found, a national title and lien record search must be
completed.
c. Provide
proof of an attempt to contact all owner(s) and lienholder(s) identified on the
title record search(es) through certified or registered mail. The proof of
attempted contact must include the following:
i. A copy of the letter sent to all owner(s)
and lienholder(s). The letter must contain:
1. The vehicle year, make, and VIN;
2. The applicant's intent (e.g., retain the
vehicle, sell the vehicle); and
3.
The applicant's contact information.
4. The letter to the lienholder shall also
include:
A) The date of the lien(s);
B) The amount secured by the vehicle;
and
C) Where the liens are of
public record.
ii. One of the following documents
demonstrating mailing of the letter with the U.S. Postal Service or other
commercial mailing entity (e.g., FedEx, UPS, DHL):
1. Certified receipt; or
2. Domestic Return Receipt - U.S. Postal Form
PS 3811; or
3. Undeliverable
notification; or
4. Electronic
proof of delivery.
d. Provide a lien release for all active
liens indicated on the title record search(es). Lien releases must be on the
lienholder's letterhead, unless the lienholder is an individual, and must
include the vehicle year, make, VIN, titled owner's name(s), agent's signature,
date of lien release, and must be notarized or signed under penalty of perjury
in the second degree as defined in 18-8-503, C.R.S. The lien release must be a
signed original or signed duplicate of the mortgage or copy thereof, certified
by the holder of the mortgage or the holder's agent to be a true copy of the
signed original mortgage.
i. If an attempt is
made to secure a lien release and the lienholder is not available or has failed
to respond, the applicant must provide one of the following documents
demonstrating mailing the letter to the lienholder's last known address with
the U.S. Postal Service or other commercial mailing entity (e.g., FedEx, UPS,
DHL):
1. Certified receipt; or
2. Domestic Return Receipt - U.S. Postal Form
PS 3811; or
3. Undeliverable
notification.
e. Provide the reasonable appraised value of
the vehicle pursuant to 42-6-115(3)(a), C.R.S. The appraisal must be for the
current condition of the vehicle at the time of bonding for title application.
The appraisal must describe the vehicle by the VIN, year, and make, and must be
established as listed by one of the following:
i. An appraisal from a Colorado licensed
motor vehicle dealer or used motor vehicle dealer that is signed by the dealer,
dated, and states the dealership's license number. If the appraisal is not on
the dealer's letterhead, the appraisal must be notarized and signed under
penalty of perjury; or
ii. A
current value obtained from Kelley Blue Book. When using the current value from
the Kelley Blue Book, the form DR 2444 Statement of Fact is also required
stating that the applicant desires to use the amount listed as the current
retail market value. The applicant must circle or mark that amount on the
Kelley Blue Book printout; or
iii.
A Current value from the National Automobile Dealers Association (N.A.D.A.)
Official Used Car Guide. When using the current value from NADA, the form DR
2444 Statement of Fact is also required stating that the applicant desires to
use the amount listed as the current retail market value. The applicant must
circle or mark that amount on the NADA printout.
f. Provide proof of a surety bond for twice
the appraised value shown on the appraisal, unless exempted pursuant to
42-6-115(3)(b),
2.3 If
the vehicle record search(es) completed in paragraph 2.2b above indicates the
vehicle is salvage, then the applicant must complete the rebuilt from salvage
requirements listed on form DR 2415 Rebuilt Title Established By Salvage Title
Checklist.
2.4 The applicant must
disclose at the time of bonding for title the vehicle's odometer reading on the
Secure Form DR 2173 Bill of Sale for Motor Vehicle provided by the Department
for vehicles with model years of less than twenty years beginning with model
year 2011 on January 1, 2021.
2.5
If the vehicle is a trailer weighing 2,000 pounds or less, and the applicant
provides a form DR 2697 Certification of Equipment Compliance for Homemade and
In Lieu of Bond Trailers, and the applicant completes the form DR 2908 In Lieu
Of Bond For Trailer 2000 Pounds or Less Checklist, as necessary, then the
applicant is deemed to have provided sufficient evidence of ownership
satisfactory to the director for purposes of this rule and is not required to
purchase a surety bond.
3.0
Appeals
3.1 Applicants
who have been denied issuance of a Colorado certificate of title upon
submitting a bonding for title application the applicant may request a hearing,
in writing, within 60 days after the date of notice of denial. Written hearing
requests shall be submitted to the Department of Revenue, via email at
dor_regulatoryhearings@state.co.us or by mail at PO Box 17807, Denver, CO
80217-0087. Applicants must include and provide with the request for hearing
their full name, mailing address, email address, the Vehicle Identification
Number (VIN) of the vehicle in question, and a copy of the denial letter
received from the DMV.
3.2 The
hearing shall be held virtually at the Department of Revenue, Hearings
Division. The presiding hearing officer shall be an authorized representative
designated by the Executive Director. The department's representative need not
be present at the hearing unless the presiding hearing officer requires his or
her presence or the person requesting the hearing requests his or her presence
in writing. If the department's representative is not present at the hearing,
the hearing officer has the discretion to consider any written documents and
affidavits submitted by the department.
Notes
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