§ 31-3.1-14 - Transfer by operation of law.
SECTION 31-3.1-14
§ 31-3.1-14 Transfer by operation of law.– (a) If the interest of any owner in a vehicle passes to another other than byvoluntary transfer, the transferee shall, except as provided in subsection (b),promptly mail or deliver to the division of motor vehicles the last certificateof title, if available, proof of the transfer, and his or her application for anew certificate in the form the division of motor vehicles prescribes.
(b) If the interest of the owner is terminated or the vehicleis sold under a security agreement by a lienholder named in the certificate oftitle, the transferee shall promptly mail or deliver to the division of motorvehicles the last certificate of title, his or her application for a newcertificate in the form the division of motor vehicles prescribes, and anaffidavit made by or on behalf of the lienholder that the vehicle wasrepossessed and that the interest of the owner was lawfully terminated or soldpursuant to the terms of the security agreement. If the lienholder succeeds tothe interest of the owner and holds the vehicle for resale, the lienholder neednot secure a new certificate of title but, upon transfer to another personshall promptly mail or deliver to the transferee or to the division of motorvehicles, the certificate, affidavit, and other documents and articles requiredto be sent to the division of motor vehicles by the transferee.
(c) A person holding a certificate of title whose interest inthe vehicle has been extinguished or transferred other than by voluntarytransfer shall mail or deliver the certificate to the division of motorvehicles upon request of the division of motor vehicles. The delivery of thecertificate pursuant to the request of the division of motor vehicles does notaffect the rights of the person surrendering the certificate, and the action ofthe division of motor vehicles in issuing a new certificate of title asprovided in this section is not conclusive upon the rights of an owner orlienholder named in the old certificate.