Vehicle Industry Registration Procedures Manual

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Section 24 of 38

Chapter 23: Bonds and Certifications

23.050 Unavailable Legal Owners

A motor vehicle bond may be accepted in lieu of the release by the legal owner/lienholder when all efforts to contact the legal owner/lienholder to obtain a release of interest or lien satisfied have been exhausted. A bond is required regardless of the vehicle or vessels value.

If the legal owner is an individual, the following must be submitted:

  • Evidence of the applicant’s attempt to obtain the legal owner’s release in the form of a returned and unopened certified letter. The postal receipt acknowledging receipt of the letter by the addressee may be accepted in situations where a certified letter is delivered, but after 30 days the sender has not received a response.
  • A Statement of Facts (REG 256) form stating the current retail value of the vehicle or vessel and the diligent effort information.
  • A motor vehicle or vessel bond or bond alternative for the value of the vehicle or vessel.
  • Fees due.

The procedure below must be followed:

  • Process as a clearing transaction, once all required items are submitted.

If the legal owner is a dealer out of business (DOB), the following must be submitted:

  • A lien satisfied from the DOB legal owner or evidence of their attempt to obtain the lien satisfied in the form of a returned and unopened certified letter.
    — If after 30 days the sender has not received a response, a postal receipt acknowledging receipt of the letter by the addressee may be accepted.
  • A Statement of Facts (REG 256) form, completed by the applicant stating the current retail value of the vehicle and the diligent effort information.
  • If a lien satisfied from the DOB legal owner is not submittted, a motor vehicle or vessel bond or bond alternative for the value of the vehicle is required.
  • Fees due.

The procedures below must be followed:

  • Determine that the dealer is out of business by running an Occupational Licensing Inquiry (OLI) on the dealer name or number. The contact person for a DOB is the owner shown on the record.
  • Give the applicant the owner’s name and telephone number from the OLI.
  • Print “DOB MM/DD/YYYY see OLI attached,” on line 2 of the REG 227.
  • Attach the OLI printout to the application.
  • Collect a motor vehicle or vessel bond or bond alternative with the application.
  • Process as a clearing transaction.
    Do not use this procedure if the OLI record does not indicate DOB. Give the applicant the dealer’s address and telephone number so that a lien satisfied from the dealer may be obtained.

If the legal owner is a bank or a financial or lending institution, the following must be submitted:

  • A lien satisfied from the DOB legal owner or evidence of their attempt to obtain the lien satisfied in the form of a returned and unopened certified letter.
    — If after 30 days the sender has not received a response, a postal receipt acknowledging receipt of the letter by the addressee may be accepted.
  • A REG 256 stating the current retail value of the vehicle and the diligent effort information.
  • Fees due.

For vehicles two model years old or newer:

  • Electronic lien and title (ELT) legal owner of record participants must continue to use the appropriate ELT process to release the lien or transfer legal ownership.
  • If the legal owner of record is not an ELT participant and the original Certificate of Title is lost, the legal owner must apply for a duplicate title using an Application for Duplicate or Paperless Title (REG 227) form.
  • REG 227. The lien can then be released upon receipt of the new title and mailed to the registered owner.
  • The address of the legal owner cannot be changed when applying for a duplicate title. This should be done prior to requesting a duplicate title.
  • If the legal owner refuses to assist the registered owner, the registered owner must follow the procedures Diligent Effort Process section in this chapter. Forward the paperwork to DMV headquarters.

The procedures below must be followed:

  • If the application is complete, except for the legal owner’s release, forward the transaction to DMV headquarters.
  • Inform the applicant that DMV headquarters will research the application to determine whether or not a financial institution or a successor exists and will advise them of any additional requirements.