Establishes the "vehicle lienholder accountability act"; requires lienholders to provide notice to the owner of the vehicle when such lienholder assigns his or her security interest and requires such lienholder to execute a release of his or her security interest, within ten days of such assignment.

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A2094-2011 Actions

• Jan 4, 2012: ordered to third reading cal.93
• Jan 4, 2012: RETURNED TO ASSEMBLY
• Jan 4, 2012: DIED IN SENATE
• Jun 7, 2011: REFERRED TO TRANSPORTATION
• Jun 7, 2011: delivered to senate
• Jun 7, 2011: passed assembly
• Mar 10, 2011: advanced to third reading cal.104
• Mar 8, 2011: reported
• Mar 1, 2011: reported referred to codes
• Jan 13, 2011: referred to transportation

A2094-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    2094

                         2011-2012 Regular Sessions

                            I N  ASSEMBLY

                              January 13, 2011
                                 ___________

  Introduced  by  M.  of  A.  DenDEKKER  --  read once and referred to the
    Committee on Transportation

  AN ACT to amend the vehicle and traffic law, in relation to establishing
    the "vehicle lienholder accountability act"; to require lienholders to
    provide notice to the  owner  of  the  vehicle  when  such  lienholder
    assigns his or her security interest

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. This act shall be known and may be cited  as  the  "vehicle
  lienholder accountability act".
    S  2. Section 2120 of the vehicle and traffic law, as added by chapter
  1134 of the laws of 1971, is amended to read as follows:

    S 2120. Assignment by lienholder. (a) A lienholder may  assign,  abso-
  lutely  or  otherwise,  his OR HER security interest in the vehicle to a
  person other than the owner without affecting the interest of the  owner
  or  the  validity of the security interest, [but any] PROVIDED THAT SUCH
  LIENHOLDER NOTIFIES THE OWNER OF THE VEHICLE  OF  SUCH  ASSIGNMENT,  AND
  EXECUTES  A  RELEASE  OF HIS OR HER SECURITY INTEREST WITHIN TEN DAYS OF
  SUCH  ASSIGNMENT.  ANY  person  without  notice  of  the  assignment  is
  protected  in  dealing with the lienholder as the holder of the security
  interest and the lienholder remains liable for any obligations as  lien-
  holder until the assignee is named as lienholder on the certificate.
    (b) The assignee may, but need not to perfect the assignment, have the
  certificate of title endorsed or issued with the assignee named as lien-
  holder,  upon  delivering to the commissioner an assignment by the lien-
  holder named in the certificate in the form the commissioner prescribes.
  Upon the request of the assignee  the  commissioner  shall  request  the
  owner to deliver to the commissioner the certificate of title.
    (C) A LIENHOLDER WHO VIOLATES THE PROVISIONS OF THIS SECTION SHALL PAY
  A CIVIL PENALTY NOT TO EXCEED ONE THOUSAND DOLLARS.
    S  3.  This  act shall take effect on the thirtieth day after it shall
  have become a law.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD05072-01-1