Session of 1998
SENATE BILL No. 389
By Senator Harrington
10-9
9
AN ACT relating to motor vehicles; concerning
certificates of title;
10 amending K.S.A. 1997
Supp. 8-135 and repealing the existing section.
11
12 Be it enacted by the Legislature of the
State of Kansas:
13 Section 1. K.S.A. 1997 Supp.
8-135 is hereby amended to read as
14 follows: 8-135. (a) Upon the transfer of
ownership of any vehicle regis-
15 tered under this act, the registration of
the vehicle and the right to use
16 any license plate thereon shall expire and
thereafter there shall be no
17 transfer of any registration, and the
license plate shall be removed by the
18 owner thereof. It shall be unlawful for any
person, other than the person
19 to whom the license plate was originally
issued, to have possession
20 thereof. When the ownership of a registered
vehicle is transferred, the
21 original owner of the license plate may
register another vehicle under the
22 same number, upon application and payment
of a fee of $1.50, if such
23 other vehicle does not require a higher
license fee. If a higher license fee
24 is required, then the transfer may be made
upon the payment of the
25 transfer fee of $1.50 and the difference
between the fee originally paid
26 and that due for the new vehicle.
27 (b) Subject to the provisions
of subsection (a) of K.S.A. 8-198, and
28 amendments thereto, upon the transfer or
sale of any vehicle by any
29 person or dealer, or upon any transfer in
accordance with K.S.A. 1997
30 Supp. 59-3511, the new owner thereof,
within 30 days, inclusive of week-
31 ends and holidays, from date of such
transfer shall make application to
32 the division for registration or
reregistration of the vehicle, but no person
33 shall operate the vehicle on any highway in
this state during the thirty-
34 day period without having applied for and
obtained temporary registration
35 from the county treasurer or from a dealer.
After the expiration of the
36 thirty-day period, it shall be unlawful for
the owner or any other person
37 to operate such vehicle upon the highways
of this state unless the vehicle
38 has been registered as provided in this
act. For failure to make application
39 for registration as provided in this
section, a penalty of $2 shall be added
40 to other fees. When a person has a current
motorcycle or passenger ve-
41 hicle registration and license plate,
including any registration decal affixed
42 thereto, for a vehicle and has sold or
otherwise disposed of the vehicle
43 and has acquired another motorcycle or
passenger vehicle and intends to
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1 transfer the registration and the
license plate to the motorcycle or pas-
2 senger vehicle acquired, but has not
yet had the registration transferred
3 in the office of the county
treasurer, such person may operate the mo-
4 torcycle or passenger vehicle
acquired for a period of not to exceed 30
5 days by displaying the license plate
on the rear of the vehicle acquired.
6 If the acquired vehicle is a new
vehicle such person also must carry the
7 assigned certificate of title or
manufacturer's statement of origin when
8 operating the acquired vehicle,
except that a dealer may operate such
9 vehicle by displaying such dealer's
dealer license plate.
10 (c) Certificate of title: No
vehicle required to be registered shall be
11 registered or any license plate or
registration decal issued therefor, unless
12 the applicant for registration shall
present satisfactory evidence of own-
13 ership and apply for an original
certificate of title for such vehicle. The
14 following paragraphs of this subsection
shall apply to the issuance of a
15 certificate of title for a nonhighway
vehicle, as defined in K.S.A. 8-197,
16 and amendments thereto, except to the
extent such paragraphs are made
17 inapplicable by or are inconsistent with
K.S.A. 8-198, and amendments
18 thereto.
19 (1) An application for
certificate of title shall be made by the owner
20 or the owner's agent upon a form furnished
by the division and shall state
21 all liens or encumbrances thereon, and such
other information as the
22 division may require. Notwithstanding any
other provision of this section,
23 no certificate of title, other than a
duplicate title, shall be issued for a
24 vehicle having any unreleased lien or
encumbrance thereon, unless the
25 transfer of such vehicle has been consented
to in writing by the holder
26 of the lien or encumbrance. Such consent
shall be in a form approved by
27 the division. In the case of members of the
armed forces of the United
28 States while the United States is engaged
at war with any foreign nation
29 and for a period of six months next
following the cessation of hostilities,
30 such application may be signed by the
owner's spouse, parents, brother
31 or sister. The county treasurer shall use
reasonable diligence in ascer-
32 taining whether the facts stated in such
application are true, and if sat-
33 isfied that the applicant is the lawful
owner of such vehicle, or otherwise
34 entitled to have the same registered in
such applicant's name, shall so
35 notify the division, who shall issue an
appropriate certificate of title. The
36 certificate of title shall be in a form
approved by the division, and shall
37 contain a statement of any liens or
encumbrances which the application
38 shows, and such other information as the
division determines.
39 (2) The certificate of title
shall contain upon the reverse side a form
40 for assignment of title to be executed by
the owner before a notary public
41 or some other officer authorized to
administer an oath. This assignment
42 shall contain a statement of all liens or
encumbrances on the vehicle at
43 the time of assignment. The certificate of
title shall also contain on the
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1 reverse side blank spaces so that an
abstract of mileage as to each owner
2 will be available. The seller at the
time of each sale shall insert the mileage
3 on the form filed for application or
reassignment of title, and the division
4 shall insert such mileage on the
certificate of title when issued to pur-
5 chaser or assignee. The signature of
the purchaser or assignee is required
6 on the form filed for application or
reassignment of title, acknowledging
7 the odometer certification made by
the seller, except that vehicles which
8 are 10 model years or older and
trucks with a gross vehicle weight of
9 more than 16,000 pounds shall be
exempt from the mileage acknowledg-
10 ment requirement of the purchaser or
assignee. Such title shall indicate
11 whether the vehicle for which it is issued
has been titled previously as a
12 nonhighway vehicle. In addition, the
reverse side shall contain two forms
13 for reassignment by a dealer, stating the
liens or encumbrances thereon.
14 The first form of reassignment shall be
used only when a dealer sells the
15 vehicle to another dealer. The second form
of reassignment shall be used
16 by a dealer when selling the vehicle to
another dealer or the ultimate
17 owner of the vehicle. The reassignment by a
dealer shall be used only
18 where the dealer resells the vehicle, and
during the time that the vehicle
19 remains in the dealer's possession for
resale, the certificate of title shall
20 be dormant. When the ownership of any
vehicle passes by operation of
21 law, or repossession upon default of a
lease, security agreement, or ex-
22 ecutory sales contract, the person owning
such vehicle, upon furnishing
23 satisfactory proof to the county treasurer
of such ownership, may procure
24 a certificate of title to the vehicle. When
a vehicle is registered in another
25 state and is repossessed in another state,
the owner of such vehicle shall
26 not be entitled to obtain a valid Kansas
title or registration, except that
27 when a vehicle is registered in
another state, but is financed originally by
28 a financial institution chartered
in the state of Kansas or when a financial
29 institution chartered in Kansas
purchases a pool of motor vehicle loans
30 from the resolution trust
corporation or a federal regulatory agency, and
31 the vehicle is repossessed in
another state, such Kansas financial institu-
32 tion shall be entitled to obtain a
valid Kansas title or registration.
33 (3) Dealers shall execute,
upon delivery to the purchaser of every new
34 vehicle, a manufacturer's statement of
origin stating the liens and encum-
35 brances thereon. Such statement of origin
shall be delivered to the pur-
36 chaser at the time of delivery of the
vehicle or at a time agreed upon by
37 the parties, not to exceed 30 days,
inclusive of weekends and holidays.
38 The agreement of the parties shall be
executed on a form approved by
39 the division. In the event delivery of
title cannot be made personally, the
40 seller may deliver the manufacturer's
statement of origin by restricted
41 mail to the address of purchaser shown on
the purchase agreement. The
42 manufacturer's statement of origin may
include an attachment containing
43 assignment of such statement of origin on
forms approved by the division.
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1 Upon the presentation to the division
of a manufacturer's statement of
2 origin, by a manufacturer or dealer
for a new vehicle, sold in this state, a
3 certificate of title shall be issued
if there is also an application for regis-
4 tration, except that no application
for registration shall be required for a
5 travel trailer used for living
quarters and not operated on the highways.
6 (4) The fee for each
original certificate of title shall be $7 until July
7 1, 1999, and $3.50 thereafter, in
addition to the fee for registration of
8 such vehicle, trailer or semitrailer.
The certificate of title shall be good
9 for the life of the vehicle, trailer
or semitrailer while owned or held by
10 the original holder of the certificate of
title.
11 (5) Upon sale and delivery to
the purchaser of every vehicle subject
12 to a purchase money security interest as
defined in K.S.A. 84-9-107, and
13 amendments thereto, the dealer or secured
party may complete a notice
14 of security interest and when so completed,
the purchaser shall execute
15 the notice, in a form prescribed by the
division, describing the vehicle
16 and showing the name and address of the
secured party and of the debtor
17 and other information the division
requires. The dealer or secured party,
18 within 15 days of the sale and delivery,
may mail or deliver the notice of
19 security interest, together with a fee of
$2.50, to the division. The notice
20 of security interest shall be retained by
the division until it receives an
21 application for a certificate of title to
the vehicle and a certificate of title
22 is issued. The certificate of title shall
indicate any security interest in the
23 vehicle. Upon issuance of the certificate
of title, the division shall mail or
24 deliver confirmation of the receipt of the
notice of security interest, the
25 date the certificate of title is issued and
the security interest indicated, to
26 the secured party at the address shown on
the notice of security interest.
27 The proper completion and timely mailing or
delivery of a notice of se-
28 curity interest by a dealer or secured
party shall perfect a security interest
29 in the vehicle described on the date of
such mailing or delivery. The
30 county treasurers shall mail a copy of the
title application to the Kansas
31 lienholder. Each county treasurer shall
charge the Kansas lienholder a
32 $1.50 service fee for processing and
mailing a copy of the title application
33 to the Kansas lienholder.
34 (6) It shall be unlawful for
any person to operate in this state a vehicle
35 required to be registered under this act,
or to transfer the title to any
36 such vehicle to any person or dealer,
unless a certificate of title has been
37 issued as herein provided. In the event of
a sale or transfer of ownership
38 of a vehicle for which a certificate of
title has been issued, which certif-
39 icate of title is in the possession of the
transferor at the time of delivery
40 of the vehicle, the holder of such
certificate of title shall endorse on the
41 same an assignment thereof, with warranty
of title in a form prescribed
42 by the division and printed thereon and the
transferor shall deliver the
43 same to the buyer at the time of delivery
to the buyer of the vehicle or
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1 at a time agreed upon by the parties,
not to exceed 30 days, inclusive of
2 weekends and holidays, after the time
of delivery. The agreement of the
3 parties shall be executed on a form
provided by the division. The require-
4 ments of this paragraph concerning
delivery of an assigned title are sat-
5 isfied if the transferor mails to the
transferee by restricted mail the as-
6 signed certificate of title within
the 30 days, and if the transferor is a
7 dealer, as defined by K.S.A. 8-2401,
and amendments thereto, such trans-
8 feror shall be deemed to have
possession of the certificate of title if the
9 transferor has made application
therefor to the division. The buyer shall
10 then present such assigned certificate of
title to the division at the time
11 of making application for registration of
such vehicle. A new certificate
12 of title shall be issued to the buyer, upon
payment of the fee of $7 until
13 July 1, 1999, and $3.50 thereafter. If such
vehicle is sold to a resident of
14 another state or country, the dealer or
person making the sale shall notify
15 the division of the sale and the division
shall make notation thereof in the
16 records of the division. When a person
acquires a security agreement on
17 a vehicle subsequent to the issuance of the
original title on such vehicle,
18 such person shall require the holder of the
certificate of title to surrender
19 the same and sign an application for a
mortgage title in form prescribed
20 by the division. Upon such surrender such
person shall immediately de-
21 liver the certificate of title,
application, and a fee of $7 until July 1, 1999,
22 and $3.50 thereafter, to the division. Upon
receipt thereof, the division
23 shall issue a new certificate of title
showing the liens or encumbrances so
24 created, but not more than two liens or
encumbrances may be shown
25 upon a title. When a prior lienholder's
name is removed from the title,
26 there must be satisfactory evidence
presented to the division that the lien
27 or encumbrance has been paid. When the
indebtedness to a lienholder,
28 whose name is shown upon a title, is paid
in full, such lienholder within
29 10 days after written demand by restricted
mail, shall furnish to the holder
30 of the title a release of lien or execute
such a release in the space provided
31 on the title. For failure to comply with
such a demand the lienholder shall
32 be liable to the holder of the title for
$100 and also shall be liable for any
33 loss caused to the holder by such failure.
When the indebtedness to a
34 lienholder, whose name is shown upon a
title, is collected in full, such
35 lienholder, within 30 days, shall furnish
notice to the holder of title that
36 such indebtedness has been paid in full and
that such title may be pre-
37 sented to the lienholder at any time for
release of lien.
38 (7) It shall be unlawful for
any person to buy or sell in this state any
39 vehicle required to be registered, unless,
at the time of delivery thereof
40 or at a time agreed upon by the parties,
not to exceed 30 days, inclusive
41 of weekends and holidays, after the time of
delivery, there shall pass
42 between the parties a certificate of title
with an assignment thereof. The
43 sale of a vehicle required to be registered
under the laws of this state,
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1 without assignment of the certificate
of title, is fraudulent and void, unless
2 the parties shall agree that the
certificate of title with assignment thereof
3 shall pass between them at a time
other than the time of delivery, but
4 within 30 days thereof. The
requirements of this paragraph concerning
5 delivery of an assigned title shall
be satisfied if (i) the seller mails to the
6 purchaser by restricted mail the
assigned certificate of title within 30 days,
7 or (ii) if the transferor is a
dealer, as defined by K.S.A. 8-2401, and amend-
8 ments thereto, such seller shall be
deemed to have possession of the
9 certificate of title if such seller
has made application therefor to the di-
10 vision, or (iii) if the transferor is a
dealer and has assigned a title pursuant
11 to paragraph (9) of this subsection
(c).
12 (8) In cases of sales under
the order of a court of a vehicle required
13 to be registered under this act, the
officer conducting such sale shall issue
14 to the purchaser a certificate naming the
purchaser and reciting the facts
15 of the sale, which certificate shall be
prima facie evidence of the own-
16 ership of such purchaser for the purpose of
obtaining a certificate of title
17 to such motor vehicle and for registering
the same. Any such purchaser
18 shall be allowed 30 days, inclusive of
weekends and holidays, from the
19 date of sale to make application to the
division for a certificate of title
20 and for the registering of such motor
vehicle.
21 (9) Any dealer who has
acquired a vehicle, the title for which was
22 issued under the laws of and in a state
other than the state of Kansas,
23 shall not be required to obtain a Kansas
certificate of title therefor during
24 the time such vehicle remains in such
dealer's possession and at such
25 dealer's place of business for the purpose
of sale. The purchaser or trans-
26 feree shall present the assigned title to
the division of vehicles when
27 making application for a certificate of
title as provided in subsection (c)(1).
28 (10) Motor vehicles may be
held and titled in transfer-on-death form.
29 Sec. 2. K.S.A. 1997 Supp.
8-135 is hereby repealed.
30 Sec. 3. This act shall take
effect and be in force from and after its
31 publication in the Kansas register.
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33