Print Friendly HOUSE BILL NO. 605 – MV, liens, notice/sale
HOUSE BILL NO. 605
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H0605.........................................by TRANSPORTATION AND DEFENSE
MOTOR VEHICLES - LIENS - Amends existing law to delete language for a form
for notice of lien and to provide for a notice of lien; to change a timing
requirement and to provide that if the legal owner of the vehicle does not
return notice of opposition within the time limit, and no opposition to the
sale of a vehicle has been lodged, the possessor lienholder shall have full
and complete authority to complete the sale as authorized by the issuance
of the authorization to conduct a lien sale from the Idaho Transportation
Department; to provide that failure of the registered or legal owners of
record to file a notice of opposition to the sale shall cause their
interest in the vehicle to be forfeited; to provide that upon completion of
the lien sale and application for certificate, a new Idaho title may be
issued to the purchase free of any prior liens.
02/17 House intro - 1st rdg - to printing
02/18 Rpt prt - to Transp
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 605
BY TRANSPORTATION AND DEFENSE COMMITTEE
1 AN ACT
2 RELATING TO LIENS; AMENDING SECTION 49-1702, IDAHO CODE, TO DELETE LANGUAGE
3 FOR A FORM FOR NOTICE OF LIEN AND TO PROVIDE FOR A NOTICE OF LIEN; AMEND-
4 ING SECTION 49-1705, IDAHO CODE, TO CHANGE A TIMING REQUIREMENT, TO PRO-
5 VIDE THAT IF THE LEGAL OWNER OF THE VEHICLE DOES NOT RETURN NOTICE OF
6 OPPOSITION WITHIN THE TIME LIMIT AND NO OPPOSITION TO THE SALE OF A VEHI-
7 CLE HAS BEEN LODGED, THE POSSESSOR LIENHOLDER SHALL HAVE FULL AND COMPLETE
8 AUTHORITY TO COMPLETE THE SALE AS AUTHORIZED BY THE ISSUANCE OF THE AUTHO-
9 RIZATION TO CONDUCT THE LIEN SALE FROM THE IDAHO TRANSPORTATION DEPARTMENT
10 AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 49-1706, IDAHO CODE,
11 TO PROVIDE THAT FAILURE OF THE REGISTERED OR LEGAL OWNERS OF RECORD OF A
12 VEHICLE TO FILE A NOTICE OF OPPOSITION TO THE SALE SHALL CAUSE THEIR
13 INTEREST IN THE VEHICLE TO BE FORFEITED AND THEY SHALL HAVE NO FURTHER
14 CLAIM TO TITLE TO THE VEHICLE AND TO PROVIDE THAT UPON COMPLETION OF THE
15 LIEN SALE, AN APPLICATION FOR CERTIFICATE OF A NEW IDAHO TITLE MAY BE
16 ISSUED TO THE PURCHASER FREE OF ANY PRIOR LIENS.
17 Be It Enacted by the Legislature of the State of Idaho:
18 SECTION 1. That Section 49-1702, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 49-1702. FORM FOR NOTICE OF LIEN. To claim the benefits of the provisions
21 of this chapter a lien claimant shall, prior to making any repairs, rendering
22 service or rendering storage facilities available, provide notice to the reg-
23 istered and legal owner or authorized agent of the owner of a motor vehicle of
24 intended repairs, service , or storage. at the request of a person in posses-
25 sion of the vehicle The registered owner or authorized agent, must sign the
26 notice and consent to the performance or rendering of the repairs, service or
27 storage. The notice shall be substantially in the following form include:
28 (1) Date of the notice;
29 (2) A description of the vehicle including the make, model, year and
30 either the license number or vehicle identification number;
31 (3) The name and address of the registered owner or their agent or both;
33 (4) The nature of the repairs, service or storage.
34 To: [Name of registered and legal owner and addresses]
35 Notice is hereby given, in accordance with the provisions of ,
36 Idaho Code, that the undersigned, of [address] has been
37 requested by , of , [address] , [the reg-
38 istered owner, or agent thereof] , to [repair or as the case may
39 be] the following described motor vehicle of which you are designated the
40 registered or legal owner on the title: [specify year, make and
41 model] , [vehicle identification no.] , [license
42 no.] . If appropriate, add: The repairs requested are as follows: .
43 The undersigned intends to begin such [repairs or as the case may
1 be] on approximately , 19 .
2 The approximate charges for the services requested will be $ , and
3 the undersigned will claim a lien on the vehicle for the actual amount of
4 such charges.
5 In accordance with the provisions of sections and , Idaho
6 Code, the undersigned requests that you consent to the performance of
7 (such repairs or as the case may be) by signing and returning the
8 enclosed copy of this notice.
9 Dated , 19 .
12 I hereby consent to the performance of the above described
13 (repairs or as the case may be.)
14 Dated , 19 .
15 (Signature of registered or legal owner)
16 SECTION 2. That Section 49-1705, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 49-1705. SALE TO SATISFY LIENS. (1) When a possessory lienholder is not
19 paid the amount of the lien due, within ten (10) business days after the same
20 becomes due, the lienholder may proceed to conduct a sale as provided by this
21 section to satisfy the lien and costs of sale, if an authorization to conduct
22 a lien sale has been issued by the department, or a judgment has been entered
23 in favor of the lienholder on the claim which gives rise to the lien, or the
24 registered and legal owners of the vehicle have signed, after the lien has
25 arisen, a release of any interest in the vehicle.
26 (2) A possessory lienholder may apply to the department for the issuance
27 of an authorization to conduct a lien sale. The application shall include all
28 of the following information:
29 (a) A description of the vehicle, including make, vehicle identification
30 number, and license number;
31 (b) The names and addresses of the registered and legal owners of the
32 vehicle, if ascertainable from registration certificates within the vehi-
33 cle, and the names and addresses of other persons whom the lienholder
34 knows or reasonably should know to could claim an interest in the vehicle;
35 (c) A statement of the amount of the lien and the facts concerning the
36 claim which give rise to the lien; and
37 (d) A statement that the lienholder has no information or belief that
38 there is a valid defense to the claim which gives rise to the lien.
39 (3) Upon receipt of an application, the department shall send a copy of
40 the application to the registered and legal owners at their addresses of
41 record with the department and to any other interested persons listed in the
42 application. The department shall also send a notice which shall include the
43 following information:
44 (a) That an application has been made with the department for the issu-
45 ance of an authorization to conduct a lien sale;
46 (b) That the person has a legal right to a hearing in court;
47 (c) That if a hearing in court is desired, an enclosed declaration of
48 opposition must be signed and returned;
49 (d) That if the declaration is signed and returned, the possessory lien-
50 holder will be allowed to sell the vehicle only if he obtains a judgment
51 in court or obtains a release from the registered and legal owners;
52 (e) That the department will issue the authorization to conduct a lien
1 sale unless the person signs and returns the declaration of opposition
2 within ten (10) business days after the date the notice was mailed; and
3 (f) That the person may be liable for costs if the lienholder brings an
4 action and if a judgment is entered in favor of the lienholder.
5 (4) If the department receives a timely mailed declaration of opposition,
6 it shall notify the possessory lienholder that he may not conduct a lien sale
8 (a) A judgment has been entered in his favor on the claim which gives
9 rise to the lien; or
10 (b) The registered and legal owners of the vehicle have signed a release
11 of any interest in the vehicle.
12 (5) An applicant shall include with his application for lien sale a fee
13 of ten dollars ($10.00) which shall be deposited in the abandoned vehicle
14 trust account. The fee shall be recoverable as a cost by the lienholder.
15 (6) If the legal owner of the vehicle herein described does not return
16 notice of opposition within the time limit prescribed in subsection (3)(e) of
17 this section and no opposition to the sale has been lodged, the possessory
18 lienholder shall have full and complete authority to complete the sale as
19 authorized by the issuance of the authorization to conduct the lien sale from
20 the Idaho transportation department.
21 SECTION 3. That Section 49-1706, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 49-1706. RELEASE OF OWNER'S INTEREST IN VEHICLE. (1) A registered or
24 legal owner of a vehicle in the possession of a person holding a lien under
25 the provisions of this chapter may release any interest in the vehicle after
26 the lien has attached.
27 (2) The release shall contain the following information:
28 (a) A description of the vehicle, including the year and make, the engine
29 or vehicle identification number, and the license number;
30 (b) The names and addresses of the registered and legal owners of record;
31 (c) A statement of the amount of the lien and the facts concerning the
32 claim which give rise to the lien; and
33 (d) A statement that the person releasing the interest understands that
34 he has a legal right to a hearing in court prior to the sale of the vehi-
35 cle and that he waives the right to contest the claim.
36 (3) A copy of the release shall be filed with the department in connec-
37 tion with the transfer of interest in a vehicle under the provisions of this
39 (4) Failure of the registered or legal owners of record to file a notice
40 of opposition to the sale shall cause their interest in the vehicle to be for-
41 feited and they shall have no further claim to title to the vehicle.
42 (5) Upon completion of the lien sale and application for certificate of
43 title, a new Idaho title may be issued to the purchaser free of any prior
STATEMENT OF PURPOSE
The purpose of this legislation is to amend and simplify the process for vehicle
$1200 expense to the Department of Motor Vehicles.
CONTACT: Rep. Ellsworth
STATEMENT OF PURPOSE/ FISCAL NOTE H 605