(b) Whenever a dealer registered under
section
415 of
the Vehicle and Traffic Law receives a
motor vehicle for the purpose of resale
and arranges for the satisfaction of any lien on such vehicle, but the
lienholder fails to immediately upon receipt of good funds submit the notice of
recorded lien indicating satisfaction of such lien to the vehicle owner named
on the title, or to any
person authorized or designated by the owner, the
dealer may request that the
commissioner issue either a duplicate title
certificate without such lien included thereon or a title certificate without
such lien included thereon. Such requests shall be mailed to the
commissioner
at New York State Department of Motor Vehicles, Title Bureau, P.O. Box 2222,
Albany, NY 12220, or if sending via express mail service, to Title Bureau,
Department of Motor Vehicles, 6 Empire State Plaza, Albany, NY 12228,
Attention: Box 2222, and shall include the following:
(1) An application for a duplicate title
certificate or for a title certificate properly completed by the owner of the
motor vehicle, accompanied by the appropriate fee.
(2) If the dealer and owner desire the
certificate to be mailed to the dealer, a written consent signed by the owner
permitting the commissioner to mail the duplicate title certificate or title
certificate to the dealer at an address designated in such written
consent.
(3) A copy of the dealer's
written notice submitted to the lienholder that the dealer shall seek to
arrange for the satisfaction and release of the lienholder's lien pursuant to
section
2121
(b) of the Vehicle and Traffic Law, together
with evidence, such as an overnight delivery confirmation or a certified mail
return receipt, that such notice was received by the lienholder not less than
two weeks prior to the dealer's application for a duplicate title certificate
or title certificate. The dealer's notice shall be sent to the lienholder
address currently on the title record maintained by the Department and shall be
in 14-point type or larger and shall read as follows:
NOTICE OF DEALER'S REQUEST FOR RELEASE OF MOTOR VEHICLE
LIEN
Motor Vehicle Information
Vehicle Identification Number (VIN): ____________
Name of Last Owner (if known):
_______________________
You are hereby notified that [Name of Dealer] (the
"Dealer") has arranged for the full payment of a loan, retail installment
contract, or other relevant instrument held by you on the above-referenced
motor vehicle. To date, the Dealer has not received the required lien release
paperwork or been advised that the owner or the owner's appointed designee has
received it.
Please be advised that if you do not promptly issue such
paperwork to the owner of the motor vehicle, the Dealer shall, two weeks from
the date of your receipt of this notice, request that DMV issue a duplicate or
new certificate of title for the above-referenced vehicle without your lien
included thereon pursuant to Section 2121(b) of the New York Vehicle and
Traffic Law. Such action by DMV will eliminate your perfected security interest
in the vehicle.
If you have any questions about this notice, you should
immediately contact the Dealer at [Mailing Address], [Telephone Number],
[E-mail Address (optional)]. Any questions about the lien release process may
be directed to Title Bureau, NYS Department of Motor Vehicles, 6 Empire State
Plaza, Albany, New York 12228, by telephone at (518) 486-4714 or by email at
dmv.sm.DealerLienSatisfaction @dmv.ny.gov.
(4) A copy of a written payoff statement:
(i) from the lienholder to the dealer, on the
lienholder's letterhead; or
(ii)
from a third-party provider otherwise authorized by the lienholder to issue
payoff statements.
The payoff statement shall contain, at a minimum, the
name of the lienholder, the VIN of the vehicle associated with the lien to be
satisfied, the amount required to satisfy such lien, and the date through which
such amount will be effective. The payoff statement may also contain a per diem
amount for the period after such effective date.
(5) Sufficient evidence that the dealer has
tendered payment to the lienholder in the amount necessary to satisfy the lien
as represented by the lienholder. Such evidence shall be in one of the
following forms:
(i) a transmission receipt
for an interbank or electronic funds transfer that evidences the amount
transferred and the VIN of the vehicle associated with the lien being
satisfied;
(ii) a copy of a bank or
cashier's check delivered to the lienholder that evidences the amount
transferred and the VIN of the vehicle associated with the lien being
satisfied, together with evidence that the check has been delivered, such as an
overnight delivery confirmation or a certified mail return receipt;
or
(iii) a written statement from
the lienholder, on its letterhead, that evidences the VIN of the vehicle
associated with the lien being satisfied and includes an acknowledgement that
such lien has been satisfied in full.
(6) A signed statement from the dealer that
it has not received any notice from the lienholder disputing the amount
tendered pursuant to paragraph (5) of this subdivision as insufficient to
satisfy the lien and that such dealer has fully complied with the provisions of
this section.
The commissioner shall promptly review the information
submitted by the dealer, and, provided that the commissioner finds that
sufficient payment has been made to fully satisfy the lien, the commissioner
shall issue a duplicate title certificate without such lien included thereon or
a title certificate without such lien included thereon within 15 business days
after receipt of all required information and fees.