Bill Text: NY A04099 | 2025-2026 | General Assembly | Introduced

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Bill Title: Relates to the issuance, records, and delivery of certificates of title; requires the establishment of an electronic lien and title program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-01-31 - referred to transportation [A04099 Detail]

Download: New_York-2025-A04099-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4099

                               2025-2026 Regular Sessions

                   IN ASSEMBLY

                                    January 31, 2025
                                       ___________

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

        AN ACT to amend the vehicle and traffic law, in relation  to  electronic
          lien records

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 2107 of the vehicle and traffic law,  as  added  by
     2  chapter  1134 of the laws of 1971, paragraphs 2 and 3 of subdivision (b)
     3  as amended and subdivision (c) as added by chapter 521 of  the  laws  of
     4  1972, is amended to read as follows:
     5    § 2107. Issuance  and  records.  (a)  The commissioner shall file each
     6  application received and, when satisfied as to its genuineness and regu-
     7  larity and that the applicant is entitled to the issuance of  a  certif-
     8  icate  of  title,  shall  issue  a  certificate of title of the vehicle,
     9  except that the commissioner  may  require  that  any  such  vehicle  be
    10  inspected in a manner prescribed by [him] the commissioner for conformi-
    11  ty  to  the description given in the application before [he] the commis-
    12  sioner issues a certificate of title.
    13    (b) The commissioner shall maintain a record of  all  certificates  of
    14  title issued by [him] the commissioner:
    15    (1) Under a distinctive title number assigned to the vehicle;
    16    (2) Under the identifying number of the vehicle;
    17    (3)  Alphabetically,  under  the  name  of  the owner, unless [he] the
    18  commissioner  maintains  alphabetical  records  of  all  owners  holding
    19  certificates of registration;
    20    (4) Under the registration number of the vehicle; and
    21    (5)  In  the  discretion of the commissioner, in any other method [he]
    22  the commissioner determines.
    23    (c) When the commissioner issues a certificate of title for a  vehicle
    24  as a result of an original application for a title or as a result of the
    25  filing  of a security interest, [he] the commissioner shall [also] issue

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03573-01-5
        A. 4099                             2

     1  and mail the certificate of title to the first lienholder [or  lienhold-
     2  ers]  named  in the original application, or to the lienholder who filed
     3  the subsequent security interest [a notice of recorded lien]  except  as
     4  provided by section twenty-one hundred nineteen-a of this article.
     5    §  2. Section 2109 of the vehicle and traffic law, as added by chapter
     6  1134 of the laws of 1971, is amended to read as follows:
     7    § 2109. Delivery. The certificate of title  shall  be  mailed  to  the
     8  owner  except  as  provided  in  subdivision  (c)  of section twenty-one
     9  hundred seven of this article.
    10    § 3. Section 2112 of the vehicle and traffic law, as amended by  chap-
    11  ter 175 of the laws of 1982, is amended to read as follows:
    12    § 2112. Lost,  stolen  or mutilated certificates. (a) If a certificate
    13  of title is lost, stolen, mutilated or destroyed or  becomes  illegible,
    14  the owner or legal representative of the owner named in the certificate,
    15  as  shown by the records of the commissioner, shall promptly make appli-
    16  cation for and may obtain a duplicate upon furnishing information satis-
    17  factory to the commissioner. Unless the original certificate of title is
    18  surrendered to the commissioner,  the  duplicate  certificate  of  title
    19  shall  contain  the  legend  "This is a duplicate certificate and may be
    20  subject to the rights of a person under the original certificate."    If
    21  the  records of the commissioner show one or more lienholders, the owner
    22  shall provide a release of security interest with the  application  from
    23  each lienholder. It shall be mailed to the owner.
    24    (b)  A  first lienholder named in the certificate may make application
    25  for and may obtain a duplicate upon furnishing information  satisfactory
    26  to the commissioner. A lienholder who is not the first may make applica-
    27  tion and may obtain a duplicate upon furnishing information satisfactory
    28  to  the  commissioner  and  shall include a release of security interest
    29  with the application for each lienholder with preceding priority.
    30    (c) A person recovering an original certificate of title for  which  a
    31  duplicate has been issued shall promptly notify the commissioner of such
    32  recovery and shall comply with the directions of the commissioner relat-
    33  ing to the disposition of such documents.
    34    (d)  The  commissioner  shall  not  issue  a duplicate if the original
    35  certificate was issued as provided by section twenty-one  hundred  nine-
    36  teen-a  of  this  article unless the lienholder is out of business or is
    37  unable to comply with subdivision  (c)  of  section  twenty-one  hundred
    38  nineteen-a of this article as determined by the commissioner.
    39    §  4.  Subdivision (c) of section 2119 of the vehicle and traffic law,
    40  as added by chapter 1134 of the laws of 1971,  is  amended  to  read  as
    41  follows:
    42    (c)  Upon  receipt  of  the  certificate of title, application and the
    43  required fee, the commissioner shall [either endorse on the certificate,
    44  or] issue a new certificate containing, the name and address of the  new
    45  lienholder, and [mail] provide the certificate to the [owner] lienholder
    46  as  provided  in  subdivision (c) of section twenty-one hundred seven of
    47  this article.
    48    § 5. The vehicle and traffic law is amended by adding  a  new  section
    49  2119-a to read as follows:
    50    §  2119-a.  Electronic  lien  and  title program. (a) The commissioner
    51  shall develop, establish, and maintain an electronic data  and  communi-
    52  cation  system  with  banks,  credit  unions, and other financial insti-
    53  tutions for the purposes of electronically recording  the  existence  of
    54  security  interests  under  the  provisions of this article. Lienholders
    55  shall electronically  transmit  liens  and  lien  satisfactions  to  the
    56  department  in  a format determined by the commissioner. Individuals and
        A. 4099                             3

     1  lienholders who the commissioner determines are not normally engaged  in
     2  the  business  or practice of financing vehicles are exempt from partic-
     3  ipating in the program.
     4    (b)  Unless an individual or lienholder is exempt from this section by
     5  the commissioner as provided in subdivision (a)  of  this  section,  the
     6  lien  shall  be  recorded electronically in the system. A certificate of
     7  title reflecting an electronically  recorded  lien  under  this  section
     8  shall not be printed unless subsequently requested by the lienholder for
     9  the purposes of conducting business or upon lien satisfaction.
    10    (c)  A  lien  recorded  electronically  shall be reported as satisfied
    11  electronically to the commissioner. Unless there are additional recorded
    12  liens, upon receiving the report of lien satisfaction, the  commissioner
    13  shall release the lienholder's rights on the certificate and issue a new
    14  certificate to the owner or any person who delivers to the lienholder an
    15  authorization  from  the  owner to receive the certificate. If there are
    16  additional recorded liens, upon receiving the report of  lien  satisfac-
    17  tion,  the  commissioner  shall  release  the lienholder's rights on the
    18  certificate. The certificate of title shall remain electronic until  all
    19  liens have been reported as satisfied.
    20    §  6.  Subdivision (b) of section 2120 of the vehicle and traffic law,
    21  as added by chapter 1134 of the laws of 1971,  is  amended  to  read  as
    22  follows:
    23    (b) The assignee may, but need not to perfect the assignment, have the
    24  certificate of title endorsed or issued with the assignee named as lien-
    25  holder,  upon  delivering to the commissioner an assignment by the lien-
    26  holder named in the certificate in the form the commissioner prescribes.
    27  Upon the request of the assignee  the  commissioner  shall  request  the
    28  owner  or  assignor  to  deliver  to the commissioner the certificate of
    29  title.
    30    § 7. Subdivision (a) of section 2121 of the vehicle and  traffic  law,
    31  as amended by chapter 691 of the laws of 1985 and as designated by chap-
    32  ter 493 of the laws of 2012, is amended to read as follows:
    33    (a)  Upon  the  satisfaction  of  a security interest in a vehicle the
    34  lienholder shall immediately upon clearance of payment execute a release
    35  of [his] such lienholder's security interest: (i) in a manner prescribed
    36  by the commissioner and mail or deliver the release, and certificate  of
    37  title  if  applicable,  to  the  owner or any person who delivers to the
    38  lienholder an authorization from the owner to receive  the  certificate,
    39  or  (ii)  as  provided  by subdivision (c) of section twenty-one hundred
    40  nineteen-a of this article.  Payment sufficient to satisfy the  security
    41  interest  by an insurer of the owner shall be deemed an authorization by
    42  the owner for the delivery of the release of the  security  interest  to
    43  the  insurer. If the payment in satisfaction of the security interest is
    44  in cash, certified check, intra-bank transfer of funds or an uncertified
    45  check or draft issued by an insurance company authorized to do  business
    46  in  this  state,  the  payment shall be deemed to be cleared immediately
    47  upon receipt. The owner, other than a dealer  holding  the  vehicle  for
    48  resale,  may cause the certificate and release to be mailed or delivered
    49  to the commissioner, who shall release the lienholder's  rights  on  the
    50  certificate [or] and issue a new certificate.
    51    § 8. This act shall take effect immediately.