Session of 1998
HOUSE BILL No. 2849
By Representative Carmody
2-9
9
AN ACT concerning certificates of titles;
relating to the assignment of
10 titles; liability;
amending K.S.A. 1997 Supp. 8-135 and repealing the
11 existing section.
12
13 Be it enacted by the Legislature of the
State of Kansas:
14 Section 1. K.S.A.
1997 Supp. 8-135 is hereby amended to read as
15 follows: 8-135. (a) Upon the transfer of
ownership of any vehicle regis-
16 tered under this act, the registration of
the vehicle and the right to use
17 any license plate thereon shall expire and
thereafter there shall be no
18 transfer of any registration, and the
license plate shall be removed by the
19 owner thereof. It shall be unlawful for any
person, other than the person
20 to whom the license plate was originally
issued, to have possession
21 thereof. When the ownership of a registered
vehicle is transferred, the
22 original owner of the license plate may
register another vehicle under the
23 same number, upon application and payment
of a fee of $1.50, if such
24 other vehicle does not require a higher
license fee. If a higher license fee
25 is required, then the transfer may be made
upon the payment of the
26 transfer fee of $1.50 and the difference
between the fee originally paid
27 and that due for the new vehicle.
28 (b) Subject to the
provisions of subsection (a) of K.S.A. 8-198, and
29 amendments thereto, upon the transfer or
sale of any vehicle by any
30 person or dealer, or upon any transfer in
accordance with K.S.A. 1997
31 Supp. 59-3511, the new owner thereof,
within 30 days, inclusive of week-
32 ends and holidays, from date of such
transfer shall make application to
33 the division for registration or
reregistration of the vehicle, but no person
34 shall operate the vehicle on any highway in
this state during the thirty-
35 day period without having applied for and
obtained temporary registration
36 from the county treasurer or from a dealer.
After the expiration of the
37 thirty-day period, it shall be unlawful for
the owner or any other person
38 to operate such vehicle upon the highways
of this state unless the vehicle
39 has been registered as provided in this
act. For failure to make application
40 for registration as provided in this
section, a penalty of $2 shall be added
41 to other fees. When a person has a current
motorcycle or passenger ve-
42 hicle registration and license plate,
including any registration decal affixed
43 thereto, for a vehicle and has sold or
otherwise disposed of the vehicle
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1 and has acquired another motorcycle
or passenger vehicle and intends to
2 transfer the registration and the
license plate to the motorcycle or pas-
3 senger vehicle acquired, but has not
yet had the registration transferred
4 in the office of the county
treasurer, such person may operate the mo-
5 torcycle or passenger vehicle
acquired for a period of not to exceed 30
6 days by displaying the license plate
on the rear of the vehicle acquired.
7 If the acquired vehicle is a new
vehicle such person also must carry the
8 assigned certificate of title or
manufacturer's statement of origin when
9 operating the acquired vehicle,
except that a dealer may operate such
10 vehicle by displaying such dealer's dealer
license plate.
11 (c) Certificate of
title: No vehicle required to be registered shall be
12 registered or any license plate or
registration decal issued therefor, unless
13 the applicant for registration shall
present satisfactory evidence of own-
14 ership and apply for an original
certificate of title for such vehicle. The
15 following paragraphs of this subsection
shall apply to the issuance of a
16 certificate of title for a nonhighway
vehicle, as defined in K.S.A. 8-197,
17 and amendments thereto, except to the
extent such paragraphs are made
18 inapplicable by or are inconsistent with
K.S.A. 8-198, and amendments
19 thereto.
20 (1) An application for
certificate of title shall be made by the owner
21 or the owner's agent upon a form furnished
by the division and shall state
22 all liens or encumbrances thereon, and such
other information as the
23 division may require. Notwithstanding any
other provision of this section,
24 no certificate of title, other than a
duplicate title, shall be issued for a
25 vehicle having any unreleased lien or
encumbrance thereon, unless the
26 transfer of such vehicle has been consented
to in writing by the holder
27 of the lien or encumbrance. Such consent
shall be in a form approved by
28 the division. In the case of members of the
armed forces of the United
29 States while the United States is engaged
at war with any foreign nation
30 and for a period of six months next
following the cessation of hostilities,
31 such application may be signed by the
owner's spouse, parents, brother
32 or sister. The county treasurer shall use
reasonable diligence in ascer-
33 taining whether the facts stated in such
application are true, and if sat-
34 isfied that the applicant is the lawful
owner of such vehicle, or otherwise
35 entitled to have the same registered in
such applicant's name, shall so
36 notify the division, who shall issue an
appropriate certificate of title. The
37 certificate of title shall be in a form
approved by the division, and shall
38 contain a statement of any liens or
encumbrances which the application
39 shows, and such other information as the
division determines.
40 (2) The certificate of
title shall contain upon the reverse side a form
41 for assignment of title to be executed by
the owner before a notary public
42 or some other officer authorized to
administer an oath. This assignment
43 shall contain a statement of all liens or
encumbrances on the vehicle at
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1 the time of assignment. The
certificate of title shall also contain on the
2 reverse side blank spaces so that an
abstract of mileage as to each owner
3 will be available. The seller at the
time of each sale shall insert the mileage
4 on the form filed for application or
reassignment of title, and the division
5 shall insert such mileage on the
certificate of title when issued to pur-
6 chaser or assignee. The signature of
the purchaser or assignee is required
7 on the form filed for application or
reassignment of title, acknowledging
8 the odometer certification made by
the seller, except that vehicles which
9 are 10 model years or older and
trucks with a gross vehicle weight of
10 more than 16,000 pounds shall be exempt
from the mileage acknowledg-
11 ment requirement of the purchaser or
assignee. Such title shall indicate
12 whether the vehicle for which it is issued
has been titled previously as a
13 nonhighway vehicle. In addition, the
reverse side shall contain two forms
14 for reassignment by a dealer, stating the
liens or encumbrances thereon.
15 The first form of reassignment shall be
used only when a dealer sells the
16 vehicle to another dealer. The second form
of reassignment shall be used
17 by a dealer when selling the vehicle to
another dealer or the ultimate
18 owner of the vehicle. The reassignment by a
dealer shall be used only
19 where the dealer resells the vehicle, and
during the time that the vehicle
20 remains in the dealer's possession for
resale, the certificate of title shall
21 be dormant. When the ownership of any
vehicle passes by operation of
22 law, or repossession upon default of a
lease, security agreement, or ex-
23 ecutory sales contract, the person owning
such vehicle, upon furnishing
24 satisfactory proof to the county treasurer
of such ownership, may procure
25 a certificate of title to the vehicle. When
a vehicle is registered in another
26 state and is repossessed in another state,
the owner of such vehicle shall
27 not be entitled to obtain a valid Kansas
title or registration, except that
28 when a vehicle is registered in another
state, but is financed originally by
29 a financial institution chartered in the
state of Kansas or when a financial
30 institution chartered in Kansas purchases a
pool of motor vehicle loans
31 from the resolution trust corporation or a
federal regulatory agency, and
32 the vehicle is repossessed in another
state, such Kansas financial institu-
33 tion shall be entitled to obtain a valid
Kansas title or registration.
34 (3) Dealers shall
execute, upon delivery to the purchaser of every new
35 vehicle, a manufacturer's statement of
origin stating the liens and encum-
36 brances thereon. Such statement of origin
shall be delivered to the pur-
37 chaser at the time of delivery of the
vehicle or at a time agreed upon by
38 the parties, not to exceed 30 days,
inclusive of weekends and holidays.
39 The agreement of the parties shall be
executed on a form approved by
40 the division. In the event delivery of
title cannot be made personally, the
41 seller may deliver the manufacturer's
statement of origin by restricted
42 mail to the address of purchaser shown on
the purchase agreement. The
43 manufacturer's statement of origin may
include an attachment containing
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1 assignment of such statement of
origin on forms approved by the division.
2 Upon the presentation to the division
of a manufacturer's statement of
3 origin, by a manufacturer or dealer
for a new vehicle, sold in this state, a
4 certificate of title shall be issued
if there is also an application for regis-
5 tration, except that no application
for registration shall be required for a
6 travel trailer used for living
quarters and not operated on the highways.
7 (4) The fee for
each original certificate of title shall be $7 until July
8 1, 1999, and $3.50 thereafter, in
addition to the fee for registration of
9 such vehicle, trailer or semitrailer.
The certificate of title shall be good
10 for the life of the vehicle, trailer or
semitrailer while owned or held by
11 the original holder of the certificate of
title.
12 (5) Upon sale and
delivery to the purchaser of every vehicle subject
13 to a purchase money security interest as
defined in K.S.A. 84-9-107, and
14 amendments thereto, the dealer or secured
party may complete a notice
15 of security interest and when so completed,
the purchaser shall execute
16 the notice, in a form prescribed by the
division, describing the vehicle
17 and showing the name and address of the
secured party and of the debtor
18 and other information the division
requires. The dealer or secured party,
19 within 15 days of the sale and delivery,
may mail or deliver the notice of
20 security interest, together with a fee of
$2.50, to the division. The notice
21 of security interest shall be retained by
the division until it receives an
22 application for a certificate of title to
the vehicle and a certificate of title
23 is issued. The certificate of title shall
indicate any security interest in the
24 vehicle. Upon issuance of the certificate
of title, the division shall mail or
25 deliver confirmation of the receipt of the
notice of security interest, the
26 date the certificate of title is issued and
the security interest indicated, to
27 the secured party at the address shown on
the notice of security interest.
28 The proper completion and timely mailing or
delivery of a notice of se-
29 curity interest by a dealer or secured
party shall perfect a security interest
30 in the vehicle described on the date of
such mailing or delivery. The
31 county treasurers shall mail a copy of the
title application to the Kansas
32 lienholder. Each county treasurer shall
charge the Kansas lienholder a
33 $1.50 service fee for processing and
mailing a copy of the title application
34 to the Kansas lienholder.
35 (6) It shall be unlawful
for any person to operate in this state a vehicle
36 required to be registered under this act,
or to transfer the title to any
37 such vehicle to any person or dealer,
unless a certificate of title has been
38 issued as herein provided. In the event of
a sale or transfer of ownership
39 of a vehicle for which a certificate of
title has been issued, which certif-
40 icate of title is in the possession of the
transferor at the time of delivery
41 of the vehicle, the holder of such
certificate of title shall endorse on the
42 same an assignment thereof, with warranty
of title in a form prescribed
43 by the division and printed thereon and the
transferor shall deliver the
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1 same to the buyer at the time of
delivery to the buyer of the vehicle or
2 at a time agreed upon by the parties,
not to exceed 30 days, inclusive of
3 weekends and holidays, after the time
of delivery. The agreement of the
4 parties shall be executed on a form
provided by the division. The require-
5 ments of this paragraph concerning
delivery of an assigned title are sat-
6 isfied if the transferor mails to the
transferee by restricted mail the as-
7 signed certificate of title within
the 30 days, and if the transferor is a
8 dealer, as defined by K.S.A. 8-2401,
and amendments thereto, such trans-
9 feror shall be deemed to have
possession of the certificate of title if the
10 transferor has made application therefor to
the division. The buyer shall
11 then present such assigned certificate of
title to the division at the time
12 of making application for registration of
such vehicle. A new certificate
13 of title shall be issued to the buyer, upon
payment of the fee of $7 until
14 July 1, 1999, and $3.50 thereafter. If such
vehicle is sold to a resident of
15 another state or country, the dealer or
person making the sale shall notify
16 the division of the sale and the division
shall make notation thereof in the
17 records of the division. When a person
acquires a security agreement on
18 a vehicle subsequent to the issuance of the
original title on such vehicle,
19 such person shall require the holder of the
certificate of title to surrender
20 the same and sign an application for a
mortgage title in form prescribed
21 by the division. Upon such surrender such
person shall immediately de-
22 liver the certificate of title,
application, and a fee of $7 until July 1, 1999,
23 and $3.50 thereafter, to the division. Upon
receipt thereof, the division
24 shall issue a new certificate of title
showing the liens or encumbrances so
25 created, but not more than two liens or
encumbrances may be shown
26 upon a title. When a prior lienholder's
name is removed from the title,
27 there must be satisfactory evidence
presented to the division that the lien
28 or encumbrance has been paid. When the
indebtedness to a lienholder,
29 whose name is shown upon a title, is paid
in full, such lienholder within
30 10 days after written demand by restricted
mail, shall furnish to the holder
31 of the title a release of lien or execute
such a release in the space provided
32 on the title. For failure to comply with
such a demand the lienholder shall
33 be liable to the holder of the title for
$100 and also shall be liable for any
34 loss caused to the holder by such failure.
When the indebtedness to a
35 lienholder, whose name is shown upon a
title, is collected in full, such
36 lienholder, within 30 days, shall furnish
notice to the holder of title that
37 such indebtedness has been paid in full and
that such title may be pre-
38 sented to the lienholder at any time for
release of lien.
39 (7) It shall be unlawful
for any person to buy or sell in this state any
40 vehicle required to be registered, unless,
at the time of delivery thereof
41 or at a time agreed upon by the parties,
not to exceed 30 days, inclusive
42 of weekends and holidays, after the time of
delivery, there shall pass
43 between the parties a certificate of title
with an assignment thereof. The
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1 sale of a vehicle required to be
registered under the laws of this state,
2 without assignment of the certificate
of title, is fraudulent and void, unless
3 the parties shall agree that the
certificate of title with assignment thereof
4 shall pass between them at a time
other than the time of delivery, but
5 within 30 days thereof. The
requirements of this paragraph concerning
6 delivery of an assigned title shall
be satisfied if (i) the seller mails to the
7 purchaser by restricted mail the
assigned certificate of title within 30 days,
8 or (ii) if the transferor is a
dealer, as defined by K.S.A. 8-2401, and amend-
9 ments thereto, such seller shall be
deemed to have possession of the
10 certificate of title if such seller has
made application therefor to the di-
11 vision, or (iii) if the transferor is a
dealer and has assigned a title pursuant
12 to paragraph (9) of this subsection
(c).
13 (8) In cases of sales
under the order of a court of a vehicle required
14 to be registered under this act, the
officer conducting such sale shall issue
15 to the purchaser a certificate naming the
purchaser and reciting the facts
16 of the sale, which certificate shall be
prima facie evidence of the own-
17 ership of such purchaser for the purpose of
obtaining a certificate of title
18 to such motor vehicle and for registering
the same. Any such purchaser
19 shall be allowed 30 days, inclusive of
weekends and holidays, from the
20 date of sale to make application to the
division for a certificate of title
21 and for the registering of such motor
vehicle.
22 (9) Any dealer who has
acquired a vehicle, the title for which was
23 issued under the laws of and in a state
other than the state of Kansas,
24 shall not be required to obtain a Kansas
certificate of title therefor during
25 the time such vehicle remains in such
dealer's possession and at such
26 dealer's place of business for the purpose
of sale. The purchaser or trans-
27 feree shall present the assigned title to
the division of vehicles when
28 making application for a certificate of
title as provided in subsection (c)(1).
29 (10) Motor vehicles may
be held and titled in transfer-on-death form.
30 (11) The owner of any
vehicle assigning a certificate of title in ac-
31 cordance with the provisions of this
section may file with the division a
32 form indicating that such owner has
assigned such certificate of title. Such
33 form shall be furnished by the division
and shall contain such information
34 as the division may require. The filing
of such form shall be prima facie
35 evidence that such certificate of title
was assigned and shall create a re-
36 buttable presumption. If the assignee of
a certificate of title fails to make
37 application for registration, an owner
assigning such title and filing the
38 form provided by this paragraph shall
not be held liable for damages
39 resulting from the operation of such
vehicle.
40 Sec. 2. K.S.A. 1997
Supp. 8-135 is hereby repealed.
41 Sec. 3. This act
shall take effect and be in force from and after its
42 publication in the statute book.
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44