What's happening
This bill requires vehicle lienholders to notify owners in writing when assigning their security interest, with penalties for noncompliance.
Why it matters
Enhances consumer protection. by ensuring vehicle owners are directly notified in writing if their lien (the loan or claim against their car) is sold or assigned to another party, helping prevent surprises and potential fraud.
Increases transparency in vehicle financing. , which can help owners track who actually holds their car loan, making it easier to resolve disputes or make payments to the correct party.
Establishes accountability for lienholders. by imposing financial penalties (up to $1,000) for failing to notify owners, which incentivizes proper communication and compliance.
Gives vehicle owners more control and awareness. over the legal status of their vehicle's title, potentially reducing administrative headaches or delays when selling, refinancing, or paying off their vehicle.
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Who cares
Headline styles
Notify Owners of Lien Transfers
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to transportation
- Referred to transportation
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Notify Owners on Lien Transfer
In Senate Committee · Transportation · Sponsor Tony Avella
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3357
2017-2018 Regular Sessions
IN ASSEMBLY
January 27, 2017
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 Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as the "vehicle lienholder accountability act".
§ 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:
§ 2120. Assignment by lienholder. (a) A lienholder may assign, absolutely 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, in writing, 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 lienholder 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 lienholder, upon delivering to the commissioner an assignment by the lienholder 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.
§ 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.
LBD01194-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.