How to title a hot rod

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===Arkansas===
 
===Arkansas===
 +
Agency 006.05
 +
REGULATION 1993-3
 +
BONDED TITLE REGULATION
 +
Pursuant to authority given the Commissioner of Revenues by subsection (b) of section 20 of
 +
Act 142 of 1949 (Ark. Code Ann. §27-14-403 (b)), after the effective date of this regulation,
 +
corporate surety bonds, certificates of deposit with assignment and irrevocable letters of
 +
credit which meet the requirements of this regulation may be accepted under those
 +
circumstances where a bond is authorized under the provisions of subsection (c) of section 1
 +
of Act 1013 of 1993 [Ark. Code Ann. §§27-14-409 (c)].
 +
(1) ˜˜Definitions:
 +
(A) “Bond” means any corporate surety bond, certificate of deposit or
 +
irrevocable letter of credit approved by the Commissioner and given for the
 +
purpose of indemnifying any prior owner or lien holder and any subsequent
 +
purchaser of a vehicle, or person acquiring any security interest in it, and
 +
their respective successors in interest, heirs, or assigns, against any expense,
 +
loss or damage, including reasonable attorney’s fees, by reason of the
 +
issuance of the certificate of title to the vehicle or on account of any defect
 +
in or undisclosed security interest upon the right, title and interest of the
 +
applicant in and to the vehicle.
 +
(B) “Bonded Title” means a certificate of title to a vehicle issued upon the
 +
condition that a bond is filed with the Commissioner of Revenues pursuant
 +
to Act 1013 of 1993 [Ark. Cod Ann. §§27-14-409 (c)].
 +
(C) “Insurer” means any person with a valid certificate of authority, issued by
 +
the Arkansas Insurance Commissioner which certificate grants the authority
 +
to become surety on contacts in the State of Arkansas, or any other
 +
guarantor approved by the Commissioner of Revenues.
 +
(D) “Vehicle” means any vehicle of a type required to be registered and titled in
 +
Arkansas, and which is in the possession of and legally controlled by the
 +
applicant for bonded title. This definition shall specifically exclude the
 +
following:
 +
(i) Vehicles issued a junking certificate, or similarly branded certificate
 +
of title, as referenced in subsection (c) of section 2. of Act 614 of
 +
1993;
 +
(ii) Vehilces for which a person holds a storage or mechanic’s lien under
 +
the provisions of Act 1000 of 1993, [Arkansas Code Annotated §27-
 +
50-1201, et. seq.], or Arkansas Code Annotated §18-45-201, et. seq.;
 +
(iii) Stolen vehicles;
 +
(iv) Vehicles involved in ownership litigation.
 +
(E) “Statement of fact” means a form prescribed by the Commissioner, to be
 +
completed by the applicant for bonded title and filed with the Commissioner
 +
prior to the filing of a bond, so that a determination can be made as to the
 +
eligibility of the applicant for issuance of a bonded title.
 +
(F) “Letter of approval” means a letter issued by the Commissioner to the
 +
applicant for bonded title granting approval to file a bond and apply for
 +
registration and issuance of a bonded title, and establishing the amount of
 +
the bond to be filed.
 +
(2) After the effective date of this regulation, any bond filed pursuant to Act 1013 of
 +
1993 [Ark. Code Ann. §§27-14-409 (c)] must guarantee payment, for a period of
 +
three (3) years from its effective date, to any prior owner or lienholder and any
 +
subsequent purchaser of a vehicle, or person acquiring any security interest in it,
 +
and their respective successors in interest, heirs or assigns against any expense,
 +
loss or damage, including reasonable attorney’s fees, by reason of the issuance of
 +
the certificate of title to the vehicle or an account of any defect in or undisclosed
 +
security interest upon the right, title and interest of the applicant in and to the
 +
vehicle.
 +
(3) A bond filed pursuant to Act 1013 of 1993 [Ark. Code Ann. §§27-14-409 (c)]
 +
shall not be accepted unless it is a corporate surety bond, certificate of deposit
 +
with assignment, or an irrevocable letter of credit filed with the Commissioner
 +
within thirty (30) days from its effective date, for an amount equal to one and one
 +
half (1 ½) times the value of the vehicle as determined by the Commissioner, and
 +
meets the following requirements:
 +
(A) “Corporate Surety Bond”: A corporate surety bond shall:
 +
(i) be on forms approved by the Commissioner;
 +
(ii) be issued by an insurer;
 +
(iii) be irrevocable for a period three (3) years;
 +
(iv) be signed by the vehicle owner (applicant for bonded title to a
 +
vehicle), and payable to the State of Arkansas upon presentation
 +
of a judgment issued by a court of competent jurisdiction as a
 +
result of the issuance of a bonded title;
 +
(v) be signed by the insurer or its licensed agent or broker with
 +
power of attorney to act on behalf of the insurer and
 +
countersigned as otherwise required by law;
 +
(vi) be delivered to the Commissioner, and accompanied by:
 +
(a) an application for registration and issuance of a certificate
 +
of title to the vehicle signed by the vehicle owner;
 +
(b) a letter from the Commissioner granting authorization to
 +
apply for a bonded title;
 +
(c) the original power of attorney of the person executing on
 +
the behalf on the insurer, if applicable;
 +
(d) any additional documentation otherwise necessary to
 +
comply with specific statutory requirements for
 +
registration and issuance of a certificate of title to a
 +
vehicle;
 +
(e) the payment of all requisite fees and taxes for the
 +
registration and issuance of a certificate of title to a
 +
vehicle.
 +
(B) “Certificate of Deposit with Assignment”:
 +
(i) The certificate of deposit and assignment shall both be on forms
 +
approved by the Commissioner.
 +
(ii) The certificate of deposit shall:
 +
(a) be signed by the assignor;
 +
(b) be issued by a bank or savings and loan:
 +
(c) be irrevocable for a period three (3) years.
 +
(iii) The assignment shall:
 +
(a) be signed by the assignor;
 +
(b) be acknowledged by the financial institution;
 +
(c) contain an irrevocable appointment of the Commissioner
 +
which allows him to endorse the certificate of deposit and
 +
apply the proceeds to any and all valid claims against the
 +
bonded title, as determined by a court of competent
 +
jurisdiction;
 +
(d) provide the assignment of the certificate of deposit is to
 +
be held by the Commissioner for a period of three (3)
 +
years from the date of delivery to the Commissioner.
 +
(iv) The certificate of deposit and assignment shall be delivered
 +
to the Commissioner, and accompanied by:
 +
(a) an application for registration and issuance of a
 +
certificate of title to the vehicle signed by the vehicle
 +
owner;
 +
(b) a letter from the Commissioner granting authorization
 +
to apply for a bonded title;
 +
(c) any additional documentation otherwise necessary to
 +
comply with specific statutory requirements for
 +
registration and issuance of a certificate of title to a
 +
vehicle;
 +
(d) the payment of all requisite fees and taxes for the
 +
registration and issuance of a certificate of title to a
 +
vehicle.
 +
(C) “Irrevocable Letter of Credit”: An irrevocable letter of credit shall:
 +
(i) be in a form as prescribed by the Commissioner;
 +
(ii) be issued by a bank or savings and loan;
 +
(iii) be an irrevocable letter of credit;
 +
(iv) be titled or conspicuously state that it is an irrevocable letter of credit;
 +
(v) state that it may be drawn against to satisfy any judgment issued by a
 +
court of competent jurisdiction as a result of the issuance of a bonded
 +
title;
 +
(vi) state that any draft drawn by the Commissioner against the letter of
 +
credit is payable upon presentation of a judgment issued by a court of
 +
competent jurisdiction as a result of the issuance of a bonded title;
 +
(vii) be irrevocable for a period of three (3) years from the date it is
 +
delivered to the Commissioner;
 +
(viii) be delivered to the Commissioner, and accompanied by:5
 +
(a) an application for registration and issuance of a certificate of title
 +
to the vehicle signed by the vehicle owner;
 +
(b) a letter from the Commissioner granting authorization to apply
 +
for a bonded title;
 +
(c) any additional documentation otherwise necessary to comply
 +
with specific statutory requirements for registration and issuance
 +
of a certificate of title to a vehicle;
 +
(d) the payment of all requisite fees and taxes for the registration and
 +
issuance of a certificate of title to a vehicle.
 +
(4) Procedure for applying for issuance of a bonded title: When a bonded title
 +
transaction is received by a State Revenue Office, the transaction should be
 +
examined to ensure that:
 +
(A) The corporate surety bond, certificate of deposit with assignment or
 +
irrevocable letter of credit has been issued for an amount equal to or
 +
exceeding the amount determined by the Department.
 +
(B) The bond is effective for a period of three (3) years from the date of
 +
issuance.
 +
(C) The application for bonded title has been made within 30 days from
 +
the effective date of the bond.
 +
(D) An application presented more than 30 days after the effective date of
 +
the bond shall not be accepted.
 +
(E) The vehicle description (year, make, model, vehicle identification
 +
number, body style) reflected on the application matches the vehicle
 +
description reflected on the bond.
 +
 +
Executed this 23 rd day of July, 1993.
 +
Jim Pledger, Director
 +
Arkansas Department of Finance and Administration
 +
Tim Leathers
 +
Commissioner of Revenues
 +
Arkansas Department of Finance and Administration
 +
(
 +
 
* [http://www.arkansas.gov/dfa/motor_vehicle/forms/10-345.pdf Bonded Title Info]
 
* [http://www.arkansas.gov/dfa/motor_vehicle/forms/10-345.pdf Bonded Title Info]
  

Revision as of 00:24, 20 October 2006

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