HB 2056--Am. by SCW
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[As Amended by Senate Committee of the
Whole]
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As Amended by House Committee
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Session of 1997
HOUSE BILL No. 2056
By Committee on Judiciary
1-22
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12 AN ACT concerning nonprobate transfers; relating to motor vehicles;
13 amending K.S.A. 1996 Supp. 8-135[, as amended by section 1 of
14 1997 House Bill No. 2203,] and repealing the existing section.
15
16 Be it enacted by the Legislature of the State of Kansas:
17 New Section 1. A motor vehicle, as defined by subsection (b) of
18 K.S.A. 8-126, and amendments thereto, may be titled in transfer-on-
19 death, TOD, form by including in the certificate of title a designation of
20 a beneficiary or beneficiaries to whom the motor vehicle shall be trans-
21 ferred on death of the owner or the last survivor of the joint tenant with
22 right of survivorship owners, subject to the rights of all lien holders.
23 New Sec. 2. A motor vehicle is registered in transfer-on-death form
24 by designating on the certificate of title, the name of the owner, the names
25 of tenant in common owner or the names of the joint tenant with right
26 of survivorship owners, followed in substance by the words ``transfer on
27 death to ______________________________________________________________________________________________________.''
28 (name of beneficiary or beneficiaries)
29 Instead of the words ``transfer on death to'' the abbreviation ``TOD'' may
30 be used.
31 New Sec. 3. The transfer-on-death beneficiary or beneficiaries shall
32 have no interest in the motor vehicle until the death of the owner or the
33 last survivor of the joint tenant with right of survivorship owners. A ben-
34 eficiary designation may be changed at any time by the owner or all of
35 the joint tenant with right of survivorship owners then surviving without
36 the consent of the beneficiary or beneficiaries by filing an application for
37 a subsequent certificate of title.
38 New Sec. 4. Ownership of a motor vehicle titled in transfer-on-death
39 form, for which an application for a subsequent certificate of title has not
40 been filed, shall vest in the designated beneficiary or beneficiaries on the
41 death of the owner or the last of the joint tenant with right of survivorship
42 owners, subject to the rights of all lien holders.
43 New Sec. 5. A certificate of title in transfer-on-death form shall not
44 be considered a testamentary disposition or be invalidated due to non-
HB 2056--Am. by SCW
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1 conformity with the provisions of chapter 59 of the Kansas Statutes An-
2 notated, and amendments thereto.
3 Section 6. K.S.A. 1996 Supp. 8-135 is hereby amended to read as
4 follows: 8-135. (a) Upon the transfer of ownership of any vehicle regis-
5 tered under this act, the registration of the vehicle and the right to use
6 any license plate thereon shall expire and thereafter there shall be no
7 transfer of any registration, and the license plate shall be removed by the
8 owner thereof. It shall be unlawful for any person, other than the person
9 to whom the license plate was originally issued, to have possession
10 thereof. When the ownership of a registered vehicle is transferred, the
11 original owner of the license plate may register another vehicle under the
12 same number, upon application and payment of a fee of $1.50, if such
13 other vehicle does not require a higher license fee. If a higher license fee
14 is required, then the transfer may be made upon the payment of the
15 transfer fee of $1.50 and the difference between the fee originally paid
16 and that due for the new vehicle.
17 (b) Subject to the provisions of subsection (a) of K.S.A. 8-198, and
18 amendments thereto, upon the transfer and or sale of any vehicle by any
19 person or dealer, or upon any transfer in accordance with section 4,
20 the new owner thereof, within 30 days, inclusive of weekends and holi-
21 days, from date of such transfer shall make application to the division for
22 registration or reregistration of the vehicle, but no person shall operate
23 the vehicle on any highway in this state during the thirty-day period with-
24 out having applied for and obtained temporary registration from the
25 county treasurer or from a dealer. After the expiration of the thirty-day
26 period, it shall be unlawful for the owner or any other person to operate
27 such vehicle upon the highways of this state unless the vehicle has been
28 registered as provided in this act. For failure to make application for
29 registration as provided in this section, a penalty of $2 shall be added to
30 other fees. When a person has a current motorcycle or passenger vehicle
31 registration and license plate, including any registration decal affixed
32 thereto, for a vehicle and has sold or otherwise disposed of the vehicle
33 and has acquired another motorcycle or passenger vehicle and intends to
34 transfer the registration and the license plate to the motorcycle or pas-
35 senger vehicle acquired, but has not yet had the registration transferred
36 in the office of the county treasurer, such person may operate the mo-
37 torcycle or passenger vehicle acquired for a period of not to exceed 30
38 days by displaying the license plate on the rear of the vehicle acquired.
39 If the acquired vehicle is a new vehicle such person also must carry the
40 assigned certificate of title or manufacturer's statement of origin when
41 operating the acquired vehicle, except that a dealer may operate such
42 vehicle by displaying such dealer's dealer license plate.
43 (c) Certificate of title: No vehicle required to be registered shall be
HB 2056--Am. by SCW
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1 registered or any license plate or registration decal issued therefor, unless
2 the applicant for registration shall present satisfactory evidence of own-
3 ership and apply for an original certificate of title for such vehicle. The
4 following paragraphs of this subsection shall apply to the issuance of a
5 certificate of title for a nonhighway vehicle, as defined in K.S.A. 8-197,
6 and amendments thereto, except to the extent such paragraphs are made
7 inapplicable by or are inconsistent with K.S.A. 8-198, and amendments
8 thereto.
9 (1) An application for certificate of title shall be made by the owner
10 or the owner's agent upon a form furnished by the division and shall state
11 all liens or encumbrances thereon, and such other information as the
12 division may require. Notwithstanding any other provision of this section,
13 no certificate of title, other than a duplicate title, shall be issued for a
14 vehicle having any unreleased lien or encumbrance thereon, unless the
15 transfer of such vehicle has been consented to in writing by the holder
16 of the lien or encumbrance. Such consent shall be in a form approved by
17 the division. In the case of members of the armed forces of the United
18 States while the United States is engaged at war with any foreign nation
19 and for a period of six months next following the cessation of hostilities,
20 such application may be signed by the owner's spouse, parents, brother
21 or sister. The county treasurer shall use reasonable diligence in ascer-
22 taining whether the facts stated in such application are true, and if sat-
23 isfied that the applicant is the lawful owner of such vehicle, or otherwise
24 entitled to have the same registered in such applicant's name, shall so
25 notify the division, who shall issue an appropriate certificate of title. The
26 certificate of title shall be in a form approved by the division, and shall
27 contain a statement of any liens or encumbrances which the application
28 shows, and such other information as the division determines.
29 (2) The certificate of title shall contain upon the reverse side a form
30 for assignment of title to be executed by the owner before a notary public
31 or some other officer authorized to administer an oath. This assignment
32 shall contain a statement of all liens or encumbrances on the vehicle at
33 the time of assignment. The certificate of title shall also contain on the
34 reverse side blank spaces so that an abstract of mileage as to each owner
35 will be available. The seller at the time of each sale shall insert the mileage
36 on the form filed for application or reassignment of title, and the division
37 shall insert such mileage on the certificate of title when issued to pur-
38 chaser or assignee. The signature of the purchaser or assignee is required
39 on the form filed for application or reassignment of title, acknowledging
40 the odometer certification made by the seller, except that vehicles which
41 are 10 model years or older and trucks with a gross vehicle weight of
42 more than 16,000 pounds shall be exempt from the mileage acknowledg-
43 ment requirement of the purchaser or assignee. Such title shall indicate
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1 whether the vehicle for which it is issued has been titled previously as a
2 nonhighway vehicle. In addition, the reverse side shall contain two forms
3 for reassignment by a dealer, stating the liens or encumbrances thereon.
4 The first form of reassignment shall be used only when a dealer sells the
5 vehicle to another dealer. The second form of reassignment shall be used
6 by a dealer when selling the vehicle to another dealer or the ultimate
7 owner of the vehicle. The reassignment by a dealer shall be used only
8 where the dealer resells the vehicle, and during the time that the vehicle
9 remains in the dealer's possession for resale, the certificate of title shall
10 be dormant. When the ownership of any vehicle passes by operation of
11 law, or repossession upon default of a lease, security agreement, or ex-
12 ecutory sales contract, the person owning such vehicle, upon furnishing
13 satisfactory proof to the county treasurer of such ownership, may procure
14 a certificate of title to the vehicle. When a vehicle is registered in another
15 state and is repossessed in another state, the owner of such vehicle shall
16 not be entitled to obtain a valid Kansas title or registration, except that
17 when a vehicle is registered in another state, but is financed originally by
18 a financial institution chartered in the state of Kansas or when a financial
19 institution chartered in Kansas purchases a pool of motor vehicle loans
20 from the resolution trust corporation or a federal regulatory agency, and
21 the vehicle is repossessed in another state, such Kansas financial institu-
22 tion shall be entitled to obtain a valid Kansas title or registration.
23 (3) Dealers shall execute, upon delivery to the purchaser of every new
24 vehicle, a manufacturer's statement of origin stating the liens and encum-
25 brances thereon. Such statement of origin shall be delivered to the pur-
26 chaser at the time of delivery of the vehicle or at a time agreed upon by
27 the parties, not to exceed 30 days, inclusive of weekends and holidays.
28 The agreement of the parties shall be executed on a form approved by
29 the division. In the event delivery of title cannot be made personally, the
30 seller may deliver the manufacturer's statement of origin by restricted
31 mail to the address of purchaser shown on the purchase agreement. The
32 manufacturer's statement of origin may include an attachment containing
33 assignment of such statement of origin on forms approved by the division.
34 Upon the presentation to the division of a manufacturer's statement of
35 origin, by a manufacturer or dealer for a new vehicle, sold in this state, a
36 certificate of title shall be issued if there is also an application for regis-
37 tration, except that no application for registration shall be required for a
38 travel trailer used for living quarters and not operated on the highways.
39 (4) The fee for each original certificate of title shall be $7 until July
40 1, 1999, and $3.50 thereafter, in addition to the fee for registration of
41 such vehicle, trailer or semitrailer. The certificate of title shall be good
42 for the life of the vehicle, trailer or semitrailer while owned or held by
43 the original holder of the certificate of title.
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1 (5) Upon sale and delivery to the purchaser of every vehicle subject
2 to a purchase money security interest as defined in K.S.A. 84-9-107, and
3 amendments thereto, the dealer or secured party may complete a notice
4 of security interest and when so completed, the purchaser shall execute
5 the notice, in a form prescribed by the division, describing the vehicle
6 and showing the name and address of the secured party and of the debtor
7 and other information the division requires. The dealer or secured party,
8 within 10 days of the sale and delivery, may mail or deliver the notice of
9 security interest, together with a fee of $2.50, to the division. The notice
10 of security interest shall be retained by the division until it receives an
11 application for a certificate of title to the vehicle and a certificate of title
12 is issued. The certificate of title shall indicate any security interest in the
13 vehicle. Upon issuance of the certificate of title, the division shall mail or
14 deliver confirmation of the receipt of the notice of security interest, the
15 date the certificate of title is issued and the security interest indicated, to
16 the secured party at the address shown on the notice of security interest.
17 The proper completion and timely mailing or delivery of a notice of se-
18 curity interest by a dealer or secured party shall perfect a security interest
19 in the vehicle described on the date of such mailing or delivery. The
20 county treasurers shall mail a copy of the title application to the Kansas
21 lienholder. Each county treasurer shall charge the Kansas lienholder a
22 $1.50 service fee for processing and mailing a copy of the title application
23 to the Kansas lienholder.
24 (6) It shall be unlawful for any person to operate in this state a vehicle
25 required to be registered under this act, or to transfer the title to any
26 such vehicle to any person or dealer, unless a certificate of title has been
27 issued as herein provided. In the event of a sale or transfer of ownership
28 of a vehicle for which a certificate of title has been issued, which certif-
29 icate of title is in the possession of the transferor at the time of delivery
30 of the vehicle, the holder of such certificate of title shall endorse on the
31 same an assignment thereof, with warranty of title in a form prescribed
32 by the division and printed thereon and the transferor shall deliver the
33 same to the buyer at the time of delivery to the buyer of the vehicle or
34 at a time agreed upon by the parties, not to exceed 30 days, inclusive of
35 weekends and holidays, after the time of delivery. The agreement of the
36 parties shall be executed on a form provided by the division. The require-
37 ments of this paragraph concerning delivery of an assigned title are sat-
38 isfied if the transferor mails to the transferee by restricted mail the as-
39 signed certificate of title within the 30 days, and if the transferor is a
40 dealer, as defined by K.S.A. 8-2401, and amendments thereto, such trans-
41 feror shall be deemed to have possession of the certificate of title if the
42 transferor has made application therefor to the division. The buyer shall
43 then present such assigned certificate of title to the division at the time
HB 2056--Am. by SCW
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1 of making application for registration of such vehicle. A new certificate
2 of title shall be issued to the buyer, upon payment of the fee of $7 until
3 July 1, 1999, and $3.50 thereafter. If such vehicle is sold to a resident of
4 another state or country, the dealer or person making the sale shall notify
5 the division of the sale and the division shall make notation thereof in the
6 records of the division. When a person acquires a security agreement on
7 a vehicle subsequent to the issuance of the original title on such vehicle,
8 such person shall require the holder of the certificate of title to surrender
9 the same and sign an application for a mortgage title in form prescribed
10 by the division. Upon such surrender such person shall immediately de-
11 liver the certificate of title, application, and a fee of $7 until July 1, 1999,
12 and $3.50 thereafter, to the division. Upon receipt thereof, the division
13 shall issue a new certificate of title showing the liens or encumbrances so
14 created, but not more than two liens or encumbrances may be shown
15 upon a title. When a prior lienholder's name is removed from the title,
16 there must be satisfactory evidence presented to the division that the lien
17 or encumbrance has been paid. When the indebtedness to a lienholder,
18 whose name is shown upon a title, is paid in full, such lienholder within
19 10 days after written demand by restricted mail, shall furnish to the holder
20 of the title a release of lien or execute such a release in the space provided
21 on the title. For failure to comply with such a demand the lienholder shall
22 be liable to the holder of the title for $100 and also shall be liable for any
23 loss caused to the holder by such failure. When the indebtedness to a
24 lienholder, whose name is shown upon a title, is collected in full, such
25 lienholder, within 30 days, shall furnish notice to the holder of title that
26 such indebtedness has been paid in full and that such title may be pre-
27 sented to the lienholder at any time for release of lien.
28 (7) It shall be unlawful for any person to buy or sell in this state any
29 vehicle required to be registered, unless, at the time of delivery thereof
30 or at a time agreed upon by the parties, not to exceed 30 days, inclusive
31 of weekends and holidays, after the time of delivery, there shall pass
32 between the parties a certificate of title with an assignment thereof. The
33 sale of a vehicle required to be registered under the laws of this state,
34 without assignment of the certificate of title, is fraudulent and void, unless
35 the parties shall agree that the certificate of title with assignment thereof
36 shall pass between them at a time other than the time of delivery, but
37 within 30 days thereof. The requirements of this paragraph concerning
38 delivery of an assigned title shall be satisfied if (i) the seller mails to the
39 purchaser by restricted mail the assigned certificate of title within 30 days,
40 or (ii) if the transferor is a dealer, as defined by K.S.A. 8-2401, and amend-
41 ments thereto, such seller shall be deemed to have possession of the
42 certificate of title if such seller has made application therefor to the di-
43 vision, or (iii) if the transferor is a dealer and has assigned a title pursuant
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1 to paragraph (9) of this subsection (c).
2 (8) In cases of sales under the order of a court of a vehicle required
3 to be registered under this act, the officer conducting such sale shall issue
4 to the purchaser a certificate naming the purchaser and reciting the facts
5 of the sale, which certificate shall be prima facie evidence of the own-
6 ership of such purchaser for the purpose of obtaining a certificate of title
7 to such motor vehicle and for registering the same. Any such purchaser
8 shall be allowed 30 days, inclusive of weekends and holidays, from the
9 date of sale to make application to the division for a certificate of title
10 and for the registering of such motor vehicle.
11 (9) Any dealer who has acquired a vehicle, the title for which was
12 issued under the laws of and in a state other than the state of Kansas,
13 shall not be required to obtain a Kansas certificate of title therefor during
14 the time such vehicle remains in such dealer's possession and at such
15 dealer's place of business for the purpose of sale. The purchaser or trans-
16 feree shall present the assigned title to the division of vehicles when
17 making application for a certificate of title as provided in subsection (c)(1).
18 (10) Motor vehicles may be held and titled in transfer-on-death form.
19 [Sec. 6. K.S.A. 1996 Supp. 8-135, as amended by section 1 of
20 1997 House Bill No. 2203, is hereby amended to read as follows: 8-
21 135. (a) Upon the transfer of ownership of any vehicle registered
22 under this act, the registration of the vehicle and the right to use
23 any license plate thereon shall expire and thereafter there shall be
24 no transfer of any registration, and the license plate shall be re-
25 moved by the owner thereof. It shall be unlawful for any person,
26 other than the person to whom the license plate was originally is-
27 sued, to have possession thereof. When the ownership of a registered
28 vehicle is transferred, the original owner of the license plate may
29 register another vehicle under the same number, upon application
30 and payment of a fee of $1.50, if such other vehicle does not require
31 a higher license fee. If a higher license fee is required, then the
32 transfer may be made upon the payment of the transfer fee of $1.50
33 and the difference between the fee originally paid and that due for
34 the new vehicle.
35 [(b) Subject to the provisions of subsection (a) of K.S.A. 8-198,
36 and amendments thereto, upon the transfer and or sale of any vehicle
37 by any person or dealer, or upon any transfer in accordance with sec-
38 tion 4, the new owner thereof, within 30 days, inclusive of weekends
39 and holidays, from date of such transfer shall make application to
40 the division for registration or reregistration of the vehicle, but no
41 person shall operate the vehicle on any highway in this state during
42 the thirty-day period without having applied for and obtained tem-
43 porary registration from the county treasurer or from a dealer. Af-
HB 2056--Am. by SCW
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1 ter the expiration of the thirty-day period, it shall be unlawful for
2 the owner or any other person to operate such vehicle upon the
3 highways of this state unless the vehicle has been registered as pro-
4 vided in this act. For failure to make application for registration as
5 provided in this section, a penalty of $2 shall be added to other fees.
6 When a person has a current motorcycle or passenger vehicle reg-
7 istration and license plate, including any registration decal affixed
8 thereto, for a vehicle and has sold or otherwise disposed of the ve-
9 hicle and has acquired another motorcycle or passenger vehicle and
10 intends to transfer the registration and the license plate to the mo-
11 torcycle or passenger vehicle acquired, but has not yet had the reg-
12 istration transferred in the office of the county treasurer, such per-
13 son may operate the motorcycle or passenger vehicle acquired for
14 a period of not to exceed 30 days by displaying the license plate on
15 the rear of the vehicle acquired. If the acquired vehicle is a new
16 vehicle such person also must carry the assigned certificate of title
17 or manufacturer's statement of origin when operating the acquired
18 vehicle, except that a dealer may operate such vehicle by displaying
19 such dealer's dealer license plate.
20 [(c) Certificate of title: No vehicle required to be registered
21 shall be registered or any license plate or registration decal issued
22 therefor, unless the applicant for registration shall present satisfac-
23 tory evidence of ownership and apply for an original certificate of
24 title for such vehicle. The following paragraphs of this subsection
25 shall apply to the issuance of a certificate of title for a nonhighway
26 vehicle, as defined in K.S.A. 8-197, and amendments thereto, except
27 to the extent such paragraphs are made inapplicable by or are in-
28 consistent with K.S.A. 8-198, and amendments thereto.
29 [(1) An application for certificate of title shall be made by the
30 owner or the owner's agent upon a form furnished by the division
31 and shall state all liens or encumbrances thereon, and such other
32 information as the division may require. Notwithstanding any other
33 provision of this section, no certificate of title, other than a dupli-
34 cate title, shall be issued for a vehicle having any unreleased lien
35 or encumbrance thereon, unless the transfer of such vehicle has
36 been consented to in writing by the holder of the lien or encum-
37 brance. Such consent shall be in a form approved by the division.
38 In the case of members of the armed forces of the United States while
39 the United States is engaged at war with any foreign nation and for
40 a period of six months next following the cessation of hostilities, such
41 application may be signed by the owner's spouse, parents, brother
42 or sister. The county treasurer shall use reasonable diligence in
43 ascertaining whether the facts stated in such application are true,
HB 2056--Am. by SCW
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1 and if satisfied that the applicant is the lawful owner of such vehicle,
2 or otherwise entitled to have the same registered in such applicant's
3 name, shall so notify the division, who shall issue an appropriate
4 certificate of title. The certificate of title shall be in a form approved
5 by the division, and shall contain a statement of any liens or en-
6 cumbrances which the application shows, and such other informa-
7 tion as the division determines.
8 [(2) The certificate of title shall contain upon the reverse side a
9 form for assignment of title to be executed by the owner before a
10 notary public or some other officer authorized to administer an
11 oath. This assignment shall contain a statement of all liens or en-
12 cumbrances on the vehicle at the time of assignment. The certificate
13 of title shall also contain on the reverse side blank spaces so that
14 an abstract of mileage as to each owner will be available. The seller
15 at the time of each sale shall insert the mileage on the form filed for
16 application or reassignment of title, and the division shall insert
17 such mileage on the certificate of title when issued to purchaser or
18 assignee. The signature of the purchaser or assignee is required on
19 the form filed for application or reassignment of title, acknowledg-
20 ing the odometer certification made by the seller, except that vehi-
21 cles which are 10 model years or older and trucks with a gross
22 vehicle weight of more than 16,000 pounds shall be exempt from
23 the mileage acknowledgment requirement of the purchaser or as-
24 signee. Such title shall indicate whether the vehicle for which it is
25 issued has been titled previously as a nonhighway vehicle. In ad-
26 dition, the reverse side shall contain two forms for reassignment by
27 a dealer, stating the liens or encumbrances thereon. The first form
28 of reassignment shall be used only when a dealer sells the vehicle
29 to another dealer. The second form of reassignment shall be used
30 by a dealer when selling the vehicle to another dealer or the ulti-
31 mate owner of the vehicle. The reassignment by a dealer shall be
32 used only where the dealer resells the vehicle, and during the time
33 that the vehicle remains in the dealer's possession for resale, the
34 certificate of title shall be dormant. When the ownership of any
35 vehicle passes by operation of law, or repossession upon default of
36 a lease, security agreement, or executory sales contract, the person
37 owning such vehicle, upon furnishing satisfactory proof to the
38 county treasurer of such ownership, may procure a certificate of
39 title to the vehicle. When a vehicle is registered in another state and
40 is repossessed in another state, the owner of such vehicle shall not
41 be entitled to obtain a valid Kansas title or registration, except that
42 when a vehicle is registered in another state, but is financed origi-
43 nally by a financial institution chartered in the state of Kansas or
HB 2056--Am. by SCW
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1 when a financial institution chartered in Kansas purchases a pool
2 of motor vehicle loans from the resolution trust corporation or a
3 federal regulatory agency, and the vehicle is repossessed in another
4 state, such Kansas financial institution shall be entitled to obtain a
5 valid Kansas title or registration.
6 [(3) Dealers shall execute, upon delivery to the purchaser of
7 every new vehicle, a manufacturer's statement of origin stating the
8 liens and encumbrances thereon. Such statement of origin shall be
9 delivered to the purchaser at the time of delivery of the vehicle or
10 at a time agreed upon by the parties, not to exceed 30 days, inclusive
11 of weekends and holidays. The agreement of the parties shall be
12 executed on a form approved by the division. In the event delivery
13 of title cannot be made personally, the seller may deliver the man-
14 ufacturer's statement of origin by restricted mail to the address of
15 purchaser shown on the purchase agreement. The manufacturer's
16 statement of origin may include an attachment containing assign-
17 ment of such statement of origin on forms approved by the division.
18 Upon the presentation to the division of a manufacturer's statement
19 of origin, by a manufacturer or dealer for a new vehicle, sold in this
20 state, a certificate of title shall be issued if there is also an appli-
21 cation for registration, except that no application for registration
22 shall be required for a travel trailer used for living quarters and
23 not operated on the highways.
24 [(4) The fee for each original certificate of title shall be $7 until
25 July 1, 1999, and $3.50 thereafter, in addition to the fee for regis-
26 tration of such vehicle, trailer or semitrailer. The certificate of title
27 shall be good for the life of the vehicle, trailer or semitrailer while
28 owned or held by the original holder of the certificate of title.
29 [(5) Upon sale and delivery to the purchaser of every vehicle
30 subject to a purchase money security interest as defined in K.S.A.
31 84-9-107, and amendments thereto, the dealer or secured party may
32 complete a notice of security interest and when so completed, the
33 purchaser shall execute the notice, in a form prescribed by the di-
34 vision, describing the vehicle and showing the name and address of
35 the secured party and of the debtor and other information the di-
36 vision requires. The dealer or secured party, within 15 days of the
37 sale and delivery, may mail or deliver the notice of security interest,
38 together with a fee of $2.50, to the division. The notice of security
39 interest shall be retained by the division until it receives an appli-
40 cation for a certificate of title to the vehicle and a certificate of title
41 is issued. The certificate of title shall indicate any security interest
42 in the vehicle. Upon issuance of the certificate of title, the division
43 shall mail or deliver confirmation of the receipt of the notice of
HB 2056--Am. by SCW
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1 security interest, the date the certificate of title is issued and the
2 security interest indicated, to the secured party at the address
3 shown on the notice of security interest. The proper completion and
4 timely mailing or delivery of a notice of security interest by a dealer
5 or secured party shall perfect a security interest in the vehicle de-
6 scribed on the date of such mailing or delivery. The county treas-
7 urers shall mail a copy of the title application to the Kansas lien-
8 holder. Each county treasurer shall charge the Kansas lienholder a
9 $1.50 service fee for processing and mailing a copy of the title ap-
10 plication to the Kansas lienholder.
11 [(6) It shall be unlawful for any person to operate in this state
12 a vehicle required to be registered under this act, or to transfer the
13 title to any such vehicle to any person or dealer, unless a certificate
14 of title has been issued as herein provided. In the event of a sale or
15 transfer of ownership of a vehicle for which a certificate of title has
16 been issued, which certificate of title is in the possession of the
17 transferor at the time of delivery of the vehicle, the holder of such
18 certificate of title shall endorse on the same an assignment thereof,
19 with warranty of title in a form prescribed by the division and
20 printed thereon and the transferor shall deliver the same to the
21 buyer at the time of delivery to the buyer of the vehicle or at a time
22 agreed upon by the parties, not to exceed 30 days, inclusive of week-
23 ends and holidays, after the time of delivery. The agreement of the
24 parties shall be executed on a form provided by the division. The
25 requirements of this paragraph concerning delivery of an assigned
26 title are satisfied if the transferor mails to the transferee by re-
27 stricted mail the assigned certificate of title within the 30 days, and
28 if the transferor is a dealer, as defined by K.S.A. 8-2401, and amend-
29 ments thereto, such transferor shall be deemed to have possession
30 of the certificate of title if the transferor has made application there-
31 for to the division. The buyer shall then present such assigned cer-
32 tificate of title to the division at the time of making application for
33 registration of such vehicle. A new certificate of title shall be issued
34 to the buyer, upon payment of the fee of $7 until July 1, 1999, and
35 $3.50 thereafter. If such vehicle is sold to a resident of another state
36 or country, the dealer or person making the sale shall notify the
37 division of the sale and the division shall make notation thereof in
38 the records of the division. When a person acquires a security agree-
39 ment on a vehicle subsequent to the issuance of the original title on
40 such vehicle, such person shall require the holder of the certificate
41 of title to surrender the same and sign an application for a mortgage
42 title in form prescribed by the division. Upon such surrender such
43 person shall immediately deliver the certificate of title, application,
HB 2056--Am. by SCW
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1 and a fee of $7 until July 1, 1999, and $3.50 thereafter, to the di-
2 vision. Upon receipt thereof, the division shall issue a new certifi-
3 cate of title showing the liens or encumbrances so created, but not
4 more than two liens or encumbrances may be shown upon a title.
5 When a prior lienholder's name is removed from the title, there must
6 be satisfactory evidence presented to the division that the lien or
7 encumbrance has been paid. When the indebtedness to a lienholder,
8 whose name is shown upon a title, is paid in full, such lienholder
9 within 10 days after written demand by restricted mail, shall fur-
10 nish to the holder of the title a release of lien or execute such a
11 release in the space provided on the title. For failure to comply with
12 such a demand the lienholder shall be liable to the holder of the
13 title for $100 and also shall be liable for any loss caused to the
14 holder by such failure. When the indebtedness to a lienholder,
15 whose name is shown upon a title, is collected in full, such lien-
16 holder, within 30 days, shall furnish notice to the holder of title that
17 such indebtedness has been paid in full and that such title may be
18 presented to the lienholder at any time for release of lien.
19 [(7) It shall be unlawful for any person to buy or sell in this
20 state any vehicle required to be registered, unless, at the time of
21 delivery thereof or at a time agreed upon by the parties, not to
22 exceed 30 days, inclusive of weekends and holidays, after the time
23 of delivery, there shall pass between the parties a certificate of title
24 with an assignment thereof. The sale of a vehicle required to be
25 registered under the laws of this state, without assignment of the
26 certificate of title, is fraudulent and void, unless the parties shall
27 agree that the certificate of title with assignment thereof shall pass
28 between them at a time other than the time of delivery, but within
29 30 days thereof. The requirements of this paragraph concerning
30 delivery of an assigned title shall be satisfied if (i) the seller mails
31 to the purchaser by restricted mail the assigned certificate of title
32 within 30 days, or (ii) if the transferor is a dealer, as defined by
33 K.S.A. 8-2401, and amendments thereto, such seller shall be deemed
34 to have possession of the certificate of title if such seller has made
35 application therefor to the division, or (iii) if the transferor is a
36 dealer and has assigned a title pursuant to paragraph (9) of this
37 subsection (c).
38 [(8) In cases of sales under the order of a court of a vehicle
39 required to be registered under this act, the officer conducting such
40 sale shall issue to the purchaser a certificate naming the purchaser
41 and reciting the facts of the sale, which certificate shall be prima
42 facie evidence of the ownership of such purchaser for the purpose
43 of obtaining a certificate of title to such motor vehicle and for reg-
HB 2056--Am. by SCW
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1 istering the same. Any such purchaser shall be allowed 30 days,
2 inclusive of weekends and holidays, from the date of sale to make
3 application to the division for a certificate of title and for the reg-
4 istering of such motor vehicle.
5 [(9) Any dealer who has acquired a vehicle, the title for which
6 was issued under the laws of and in a state other than the state of
7 Kansas, shall not be required to obtain a Kansas certificate of title
8 therefor during the time such vehicle remains in such dealer's pos-
9 session and at such dealer's place of business for the purpose of sale.
10 The purchaser or transferee shall present the assigned title to the
11 division of vehicles when making application for a certificate of title
12 as provided in subsection (c)(1).
13 [(10) Motor vehicles may be held and titled in transfer-on-death
14 form.]
15 Sec. 7. K.S.A. 1996 Supp. 8-135[, as amended by section 1 of 1997
16 House Bill No. 2203,] is hereby repealed.
17 Sec. 8. This act shall take effect and be in force from and after Jan-
18 uary 1, 1998, and its publication in the statute book.