CHAPTER 24
SENATE BILL No. 507
(Amended by Chapter 134)
An Act relating to certificates of title; concerning
certain boat trailers;
amending K.S.A. 8-135 and repealing the existing
section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 8-135 is hereby
amended to read as follows: 8-135.
(a) Upon the transfer of ownership of any vehicle registered under
this
act, the registration of the vehicle and the right to use any
license plate
thereon shall expire and thereafter there shall be no transfer of
any reg-
istration, and the license plate shall be removed by the owner
thereof.
Except as provided in K.S.A. 8-172, and amendments thereto, and
8-
1,147, and amendments thereto, it shall be unlawful for any person,
other
than the person to whom the license plate was originally issued, to
have
possession thereof. When the ownership of a registered vehicle is
trans-
ferred, the original owner of the license plate may register
another vehicle
under the same number, upon application and payment of a fee of
$1.50,
if such other vehicle does not require a higher license fee. If a
higher
license fee is required, then the transfer may be made upon the
payment
of the transfer fee of $1.50 and the difference between the fee
originally
paid and that due for the new vehicle.
(b) Subject to the provisions of
subsection (a) of K.S.A. 8-198, and
amendments thereto, upon the transfer or sale of any vehicle by
any
person or dealer, or upon any transfer in accordance with K.S.A.
2001
Supp. 59-3511, and amendments thereto, the new owner thereof,
within
30 days, inclusive of weekends and holidays, from date of such
transfer
shall make application to the division for registration or
reregistration of
the vehicle, but no person shall operate the vehicle on any highway
in
this state during the thirty-day period without having applied for
and
obtained temporary registration from the county treasurer or from
a
dealer. After the expiration of the thirty-day period, it shall be
unlawful
for the owner or any other person to operate such vehicle upon the
high-
ways of this state unless the vehicle has been registered as
provided in
this act. For failure to make application for registration as
provided in
this section, a penalty of $2 shall be added to other fees. When a
person
has a current motorcycle or passenger vehicle registration and
license
plate, including any registration decal affixed thereto, for a
vehicle and
has sold or otherwise disposed of the vehicle and has acquired
another
motorcycle or passenger vehicle and intends to transfer the
registration
and the license plate to the motorcycle or passenger vehicle
acquired, but
has not yet had the registration transferred in the office of the
county
treasurer, such person may operate the motorcycle or passenger
vehicle
acquired for a period of not to exceed 30 days by displaying the
license
plate on the rear of the vehicle acquired. If the acquired vehicle
is a new
vehicle such person also must carry the assigned certificate of
title or
manufacturer's statement of origin when operating the acquired
vehicle,
except that a dealer may operate such vehicle by displaying such
dealer's
dealer license plate.
(c) Certificate of title: No vehicle
required to be registered shall be
registered or any license plate or registration decal issued
therefor, unless
the applicant for registration shall present satisfactory evidence
of own-
ership and apply for an original certificate of title for such
vehicle. The
following paragraphs of this subsection shall apply to the issuance
of a
certificate of title for a nonhighway vehicle, salvage vehicle or
rebuilt
salvage vehicle, as defined in K.S.A. 8-197, and amendments
thereto,
except to the extent such paragraphs are made inapplicable by or
are
inconsistent with K.S.A. 8-198, and amendments thereto.
(1) An application for certificate of
title shall be made by the owner
or the owner's agent upon a form furnished by the division and
shall state
all liens or encumbrances thereon, and such other information as
the
division may require. Notwithstanding any other provision of this
section,
no certificate of title, other than a duplicate title, shall be
issued for a
vehicle having any unreleased lien or encumbrance thereon, unless
the
transfer of such vehicle has been consented to in writing by the
holder
of the lien or encumbrance. Such consent shall be in a form
approved by
the division. In the case of members of the armed forces of the
United
States while the United States is engaged at war with any foreign
nation
and for a period of six months next following the cessation of
hostilities,
such application may be signed by the owner's spouse, parents,
brother
or sister. The county treasurer shall use reasonable diligence in
ascer-
taining whether the facts stated in such application are true, and
if sat-
isfied that the applicant is the lawful owner of such vehicle, or
otherwise
entitled to have the same registered in such applicant's name,
shall so
notify the division, who shall issue an appropriate certificate of
title. The
certificate of title shall be in a form approved by the division,
and shall
contain a statement of any liens or encumbrances which the
application
shows, and such other information as the division determines.
(2) The certificate of title shall
contain upon the reverse side a form
for assignment of title to be executed by the owner before a notary
public
or some other officer authorized to administer an oath. This
assignment
shall contain a statement of all liens or encumbrances on the
vehicle at
the time of assignment. The certificate of title shall also contain
on the
reverse side blank spaces so that an abstract of mileage as to each
owner
will be available. The seller at the time of each sale shall insert
the mileage
on the form filed for application or reassignment of title, and the
division
shall insert such mileage on the certificate of title when issued
to pur-
chaser or assignee. The signature of the purchaser or assignee is
required
on the form filed for application or reassignment of title,
acknowledging
the odometer certification made by the seller, except that vehicles
which
are 10 model years or older and trucks with a gross vehicle weight
of
more than 16,000 pounds shall be exempt from the mileage
acknowledg-
ment requirement of the purchaser or assignee. Such title shall
indicate
whether the vehicle for which it is issued has been titled
previously as a
nonhighway vehicle or salvage vehicle. In addition, the reverse
side shall
contain two forms for reassignment by a dealer, stating the liens
or en-
cumbrances thereon. The first form of reassignment shall be used
only
when a dealer sells the vehicle to another dealer. The second form
of
reassignment shall be used by a dealer when selling the vehicle to
another
dealer or the ultimate owner of the vehicle. The reassignment by a
dealer
shall be used only where the dealer resells the vehicle, and during
the
time that the vehicle remains in the dealer's possession for
resale, the
certificate of title shall be dormant. When the ownership of any
vehicle
passes by operation of law, or repossession upon default of a
lease, se-
curity agreement, or executory sales contract, the person owning
such
vehicle, upon furnishing satisfactory proof to the county treasurer
of such
ownership, may procure a certificate of title to the vehicle. When
a vehicle
is registered in another state and is repossessed in another state,
the
owner of such vehicle shall not be entitled to obtain a valid
Kansas title
or registration, except that when a vehicle is registered in
another state,
but is financed originally by a financial institution chartered in
the state
of Kansas or when a financial institution chartered in Kansas
purchases a
pool of motor vehicle loans from the resolution trust corporation
or a
federal regulatory agency, and the vehicle is repossessed in
another state,
such Kansas financial institution shall be entitled to obtain a
valid Kansas
title or registration. In addition to any other fee required for
the issuance
of a certificate of title, any applicant obtaining a certificate of
title for a
repossessed vehicle shall pay a fee of $3.
(3) Dealers shall execute, upon delivery
to the purchaser of every new
vehicle, a manufacturer's statement of origin stating the liens and
encum-
brances thereon. Such statement of origin shall be delivered to the
pur-
chaser at the time of delivery of the vehicle or at a time agreed
upon by
the parties, not to exceed 30 days, inclusive of weekends and
holidays.
The agreement of the parties shall be executed on a form approved
by
the division. In the event delivery of title cannot be made
personally, the
seller may deliver the manufacturer's statement of origin by
restricted
mail to the address of purchaser shown on the purchase agreement.
The
manufacturer's statement of origin may include an attachment
containing
assignment of such statement of origin on forms approved by the
division.
Upon the presentation to the division of a manufacturer's statement
of
origin, by a manufacturer or dealer for a new vehicle, sold in this
state, a
certificate of title shall be issued if there is also an
application for regis-
tration, except that no application for registration shall be
required for a
travel trailer used for living quarters and not operated on the
highways.
(4) The fee for each original certificate
of title shall be $7 until July
1, 2002, $6 until July 1, 2004, and $3.50 thereafter, in addition
to the fee
for registration of such vehicle, trailer or semitrailer. The
certificate of
title shall be good for the life of the vehicle, trailer or
semitrailer while
owned or held by the original holder of the certificate of
title.
(5) Upon sale and delivery to the
purchaser of every vehicle subject
to a purchase money security interest as defined in K.S.A.
84-9-107 pro-
vided in article 9 of chapter 84 of the Kansas Statutes
Annotated, and
amendments thereto, the dealer or secured party may complete a
notice
of security interest and when so completed, the purchaser shall
execute
the notice, in a form prescribed by the division, describing the
vehicle
and showing the name and address of the secured party and of the
debtor
and other information the division requires. The dealer or secured
party,
within 20 days of the sale and delivery, may mail or deliver the
notice of
security interest, together with a fee of $2.50, to the division.
The notice
of security interest shall be retained by the division until it
receives an
application for a certificate of title to the vehicle and a
certificate of title
is issued. The certificate of title shall indicate any security
interest in the
vehicle. Upon issuance of the certificate of title, the division
shall mail or
deliver confirmation of the receipt of the notice of security
interest, the
date the certificate of title is issued and the security interest
indicated, to
the secured party at the address shown on the notice of security
interest.
The proper completion and timely mailing or delivery of a notice of
se-
curity interest by a dealer or secured party shall perfect a
security interest
in the vehicle described on the date of such mailing or delivery.
The
county treasurers shall mail a copy of the title application to the
Kansas
lienholder. Each county treasurer shall charge the Kansas
lienholder a
$1.50 service fee for processing and mailing a copy of the title
application
to the Kansas lienholder.
(6) It shall be unlawful for any person
to operate in this state a vehicle
required to be registered under this act, or to transfer the title
to any
such vehicle to any person or dealer, unless a certificate of title
has been
issued as herein provided. In the event of a sale or transfer of
ownership
of a vehicle for which a certificate of title has been issued,
which certif-
icate of title is in the possession of the transferor at the time
of delivery
of the vehicle, the holder of such certificate of title shall
endorse on the
same an assignment thereof, with warranty of title in a form
prescribed
by the division and printed thereon and the transferor shall
deliver the
same to the buyer at the time of delivery to the buyer of the
vehicle or
at a time agreed upon by the parties, not to exceed 30 days,
inclusive of
weekends and holidays, after the time of delivery. The agreement of
the
parties shall be executed on a form provided by the division. The
require-
ments of this paragraph concerning delivery of an assigned title
are sat-
isfied if the transferor mails to the transferee by restricted mail
the as-
signed certificate of title within the 30 days, and if the
transferor is a
dealer, as defined by K.S.A. 8-2401, and amendments thereto, such
trans-
feror shall be deemed to have possession of the certificate of
title if the
transferor has made application therefor to the division. The buyer
shall
then present such assigned certificate of title to the division at
the time
of making application for registration of such vehicle. A new
certificate
of title shall be issued to the buyer, upon payment of the fee of
$7 until
July 1, 2002, $6 until July 1, 2004, and $3.50 thereafter. If such
vehicle
is sold to a resident of another state or country, the dealer or
person
making the sale shall notify the division of the sale and the
division shall
make notation thereof in the records of the division. When a person
ac-
quires a security agreement on a vehicle subsequent to the issuance
of
the original title on such vehicle, such person shall require the
holder of
the certificate of title to surrender the same and sign an
application for
a mortgage title in form prescribed by the division. Upon such
surrender
such person shall immediately deliver the certificate of title,
application,
and a fee of $7 until July 1, 2002, $6 until July 1, 2004, and
$3.50 there-
after, to the division. Upon receipt thereof, the division shall
issue a new
certificate of title showing the liens or encumbrances so created,
but not
more than two liens or encumbrances may be shown upon a title.
When
a prior lienholder's name is removed from the title, there must be
satis-
factory evidence presented to the division that the lien or
encumbrance
has been paid. When the indebtedness to a lienholder, whose name
is
shown upon a title, is paid in full, such lienholder within 10 days
after
written demand by restricted mail, shall furnish to the holder of
the title
a release of lien or execute such a release in the space provided
on the
title. For failure to comply with such a demand the lienholder
shall be
liable to the holder of the title for $100 and also shall be liable
for any
loss caused to the holder by such failure. When the indebtedness to
a
lienholder, whose name is shown upon a title, is collected in full,
such
lienholder, within 30 days, shall furnish notice to the holder of
title that
such indebtedness has been paid in full and that such title may be
pre-
sented to the lienholder at any time for release of lien.
(7) It shall be unlawful for any person
to buy or sell in this state any
vehicle required to be registered, unless, at the time of delivery
thereof
or at a time agreed upon by the parties, not to exceed 30 days,
inclusive
of weekends and holidays, after the time of delivery, there shall
pass
between the parties a certificate of title with an assignment
thereof. The
sale of a vehicle required to be registered under the laws of this
state,
without assignment of the certificate of title, is fraudulent and
void, unless
the parties shall agree that the certificate of title with
assignment thereof
shall pass between them at a time other than the time of delivery,
but
within 30 days thereof. The requirements of this paragraph
concerning
delivery of an assigned title shall be satisfied if (i) the seller
mails to the
purchaser by restricted mail the assigned certificate of title
within 30 days,
or (ii) if the transferor is a dealer, as defined by K.S.A. 8-2401,
and amend-
ments thereto, such seller shall be deemed to have possession of
the
certificate of title if such seller has made application therefor
to the di-
vision, or (iii) if the transferor is a dealer and has assigned a
title pursuant
to paragraph (9) of this subsection (c).
(8) In cases of sales under the order of
a court of a vehicle required
to be registered under this act, the officer conducting such sale
shall issue
to the purchaser a certificate naming the purchaser and reciting
the facts
of the sale, which certificate shall be prima facie evidence of the
own-
ership of such purchaser for the purpose of obtaining a certificate
of title
to such motor vehicle and for registering the same. Any such
purchaser
shall be allowed 30 days, inclusive of weekends and holidays, from
the
date of sale to make application to the division for a certificate
of title
and for the registering of such motor vehicle.
(9) Any dealer who has acquired a
vehicle, the title for which was
issued under the laws of and in a state other than the state of
Kansas,
shall not be required to obtain a Kansas certificate of title
therefor during
the time such vehicle remains in such dealer's possession and at
such
dealer's place of business for the purpose of sale. The purchaser
or trans-
feree shall present the assigned title to the division of vehicles
when
making application for a certificate of title as provided in
subsection (c)(1).
(10) Motor vehicles may be held and
titled in transfer-on-death form.
(11) Notwithstanding the provisions of
this act with respect to time
requirements for delivery of a certificate of title, or
manufacturer's state-
ment of origin, as applicable, any person who chooses to reaffirm
the sale
in writing on a form approved by the division which advises them of
their
rights pursuant to paragraph (7) of subsection (c) and who has
received
and accepted assignment of the certificate of title or
manufacturer's state-
ment of origin for the vehicle in issue may not thereafter void or
set aside
the transaction with respect to the vehicle for the reason that a
certificate
of title or manufacturer's statement of origin was not timely
delivered,
and in such instances the sale of a vehicle shall not be deemed to
be
fraudulent and void for that reason alone.
(12) The owner of any vehicle assigning a
certificate of title in ac-
cordance with the provisions of this section may file with the
division a
form indicating that such owner has assigned such certificate of
title. Such
forms shall be furnished by the division and shall contain such
information
as the division may require. Any owner filing a form as provided in
this
paragraph shall pay a fee of $10. The filing of such form shall be
prima
facie evidence that such certificate of title was assigned and
shall create
a rebuttable presumption. If the assignee of a certificate of title
fails to
make application for registration, an owner assigning such title
and filing
the form in accordance with the provisions of this paragraph shall
not be
held liable for damages resulting from the operation of such
vehicle.
(13) Application for certificate of
title on a boat trailer with a gross
weight over 2,000 pounds shall be made by the owner or the
owner's
agent upon a form to be furnished by the division and shall
contain such
information as the division shall determine necessary. The
division may
waive any information requested on the form if it is not
available. The
application together with a bill of sale for the boat trailer
shall be accepted
as prima facie evidence that the applicant is the owner of the
boat trailer,
provided that a Kansas title for such trailer has not previously
been issued.
If the application and bill of sale are used to obtain a
certificate of title
for a boat trailer under this paragraph, the certificate of
title shall not be
issued until an inspection in accordance with subsection (a) of
K.S.A. 8-
116a, and amendments thereto, has been completed.
Sec. 2. K.S.A. 8-135 is hereby
repealed.
Sec. 3. This act shall take effect
and be in force from and after its
publication in the statute book.
Approved April 4, 2002.
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