Georgia House of Representatives - 1995/1996 Sessions

HB 184 - Motor veh; cert of title; dealer application

Page Numbers - 1/ 2

1. Powell  23rd           2. Parham  122nd


House Comm: MotV       /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
              ----------------------------------------                                              
               House          Action         Senate                                                 
              ----------------------------------------                                              
              1/12/95  Read 1st Time                                                                
              1/13/95  Read 2nd Time                                                                
              2/1/95   Favorably Reported                                                           
              Am       Committee Amend/Sub                                                          
              3/17/95  Recommitted                                                                  
              ----------------------------------------                                              
                                                                                                    
Code Sections amended: 40-3-21, 40-3-50                                                             


HB 184                                            LC 16 3886






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Chapter 3 of Title 40 of the Official Code of
  1- 2  Georgia Annotated, relating to motor vehicle certificates of
  1- 3  title, security interests, and liens, so as to provide that
  1- 4  a motor vehicle dealer may submit the application for a
  1- 5  certificate of title for any vehicle purchased from such
  1- 6  dealer with any local county tag agent; to provide that a
  1- 7  dealer may perfect its security interest in a motor vehicle
  1- 8  by application to any local county tag agent; to repeal
  1- 9  conflicting laws; and for other purposes.

  1-10       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1-11  Chapter 3 of Title 40 of the Official Code of Georgia
  1-12  Annotated, relating to motor vehicle certificates of title,
  1-13  security interests, and liens, is amended by striking
  1-14  subsection (b) of Code Section 40-3-21, relating to
  1-15  application for a first certificate of title, in its
  1-16  entirety and inserting in lieu thereof the following:

  1-17    "(b) If the application refers to a vehicle purchased from
  1-18    a dealer, it shall contain the name and address of the
  1-19    holder of any security interest created or reserved at the
  1-20    time of the sale by the dealer.  The application shall be
  1-21    signed by the owner and, unless the dealer's signature
  1-22    appears on the certificate of title or manufacturer's
  1-23    statement of origin submitted in support of the title
  1-24    application, the dealer.  The dealer shall promptly mail
  1-25    or deliver the application to the commissioner or his
  1-26    appropriate authorized any local county tag agent so as to
  1-27    have the application submitted to the commissioner or his
  1-28    appropriate authorized any local county tag agent within
  1-29    90 days from the date of the sale of the vehicle.  If the
  1-30    application is not submitted within that time, the dealer,
  1-31    or in nondealer sales the transferee, shall be required to
  1-32    pay a penalty of $10.00 in addition to the ordinary title
  1-33    fee paid by the transferee provided for in this chapter.
              1/13/95  Read 2nd Time                                                                e


                                 -1- (Index)

                                                  LC 16 3886

  2- 1    application are rejected, the dealer submitting the
  2- 2    documents shall have 60 days from the date of initial
  2- 3    rejection to resubmit the documents required by the
  2- 4    commissioner for the issuance of a certificate of title.
  2- 5    Should the documents not be properly resubmitted within 60
  2- 6    days, there shall be an additional penalty of $10.00
  2- 7    assessed against the dealer.  The willful failure of a
  2- 8    dealer to obtain a certificate of title for a purchaser
  2- 9    shall be grounds for suspension or revocation of the
  2-10    dealer's state issued license and registration for the
  2-11    sale of motor vehicles."

                         SECTION 2.

  2-12  Said chapter is further amended by striking subsection (b)
  2-13  of Code Section 40-3-50, relating to perfection of security
  2-14  interests generally, in its entirety and inserting in lieu
  2-15  thereof the following:

  2-16    "(b) A security interest is perfected by delivery to the
  2-17    commissioner or to the any local tag agent in the county
  2-18    wherein the vehicle owner resides of the existing
  2-19    certificate of title, if any, and an application for a
  2-20    certificate of title containing the name and address of
  2-21    the holder of a security interest and the required fee.
  2-22    The security interest is perfected as of the time of its
  2-23    creation if the initial delivery to the commissioner or
  2-24    local tag agent is completed within 20 days thereafter,
  2-25    regardless of any subsequent rejection of the application
  2-26    for errors; otherwise, as of the date of the delivery to
  2-27    the commissioner or local tag agent.  The local tag agent
  2-28    shall issue a receipt or other evidence of the date of
  2-29    filing of such application.  When the security interest is
  2-30    perfected as provided for in this subsection, it shall
  2-31    constitute notice to everybody of the security interest of
  2-32    the holder."

                         SECTION 3.

  2-33  All laws and parts of laws in conflict with this Act are
  2-34  repealed.










                                 -2- (Index)