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Developed and maintained by the Division of Legislative Automated Systems.
2006 SESSION
068831848Be it enacted by the General Assembly of Virginia:
1. That § 46.2-1542 of the Code of Virginia is amended and reenacted as follows:
§ 46.2-1542. Temporary registration.
A. [ Notwithstanding §§ 46.2-617 and 46.2-628, whenever Whenever
Notwithstanding §§ 46.2-617 and 46.2-628, whenever ] a dealer licensed by the
Board sells or conditionally sells and delivers to a purchaser a motor
vehicle and, the dealer may issue temporary license plates and a
certificate of temporary registration. The temporary license plates and the
certificates for temporary registration shall be obtained from the
Commissioner or may be printed according to terms set by the Commissioner and
may be issued if (i) the dealer has the title or the certificate of origin for
the vehicle or (ii) is unable at the time of the sale to deliver to the
purchaser the certificate of title or certificate of origin for the vehicle
because the certificate of title or certificate of origin is lost or is being
detained by another in possession or for any other reason beyond the dealer's
control, the dealer shall execute, on forms provided by the Commissioner, a
temporary certificate of ownership. The temporary registration certificate
shall bear its date of issuance, the name and address of the purchaser, the identification
number of the vehicle, the registration number to be used temporarily on the
vehicle, the name of the state in which the vehicle is to be registered, the
name and address of the person from whom the dealer acquired the vehicle, and
whatever other information may be required by the Commissioner. A copy of the
temporary registration certificate and a bona fide bill of sale
buyer's order shall be delivered to the purchaser and shall be in the
possession of the purchaser at all times when operating the vehicle. One copy
of the certificate shall be retained by the dealer, which copy may be
retained in electronic format under terms set by the Commissioner, and
shall be subject to inspection at any time by the Department's agents. The
original of the certificate shall be forwarded by the dealer to the Department
directly on issuance to the purchaser if the vehicle is to be titled outside
the Commonwealth, along with the physical or electronic application for
title. The issuance of a temporary certificate of ownership
registration to a purchaser pursuant to this section shall have the effect
of vesting ownership to sufficient interest in the vehicle in the
purchaser for the period that the certificate remains effective for purposes
of allowing the purchaser (a) to obtain and provide insurance coverage for the
vehicle, including but not limited to insurance indemnifying the purchaser
against liability or providing for recovery for damage to or loss of the
vehicle and (b) to operate the vehicle as if the purchaser had full rights of
ownership, all subject to cancellation by applicable law or agreement between
the dealer and the purchaser prior to the time the dealer submits an
application for title along with all required fees.
B. A temporary certificate of ownership registration
issued by a dealer to a purchaser pursuant to this section shall expire on
receipt by the purchaser of a when the certificate of title to the
vehicle is issued by the Department in the name of the purchaser and
the permanent license plates have been affixed to the vehicle, but in no
event shall any temporary certificate of ownership registration
issued under this section be effective for more than thirty days from the date
of its issuance. In the event that the dealer fails to produce the old
certificate of title or certificate of origin to the vehicle or fails to apply
for a replacement certificate of title pursuant to § 46.2-632, thereby
preventing delivery to the Department or purchaser before the expiration of the
temporary certificate of ownership registration, the purchaser's
ownership of the vehicle temporary rights may terminate and the
purchaser shall have the right to return the vehicle to the dealer and obtain a
full refund of all payments made toward the purchase of the vehicle, provided
the purchaser provides written notice to the dealer of a decision to return the
vehicle before issuance of a title for the vehicle by the Department, less
any damage to the vehicle incurred while ownership was vested in the purchaser,
and less a reasonable amount for use not to exceed one-half the amount allowed
per mile by the Internal Revenue Service, as provided by regulation, revenue
procedure, or revenue ruling promulgated pursuant to § 162 of the Internal
Revenue Code, for use of a personal vehicle for business purposes.
C. Notwithstanding subsection B of this section, if the dealer
fails to deliver the certificate of title or certificate of origin to the
purchaser within thirty days, a second temporary certificate of ownership
registration may be issued. However, the dealer shall, not later than the
expiration of the first temporary certificate, deliver to the Department an
application for title, copy of the bill of sale, all required fees and a
written statement of facts describing the dealer's efforts to secure the
certificate of title or certificate of origin to the vehicle. On receipt of the
title application with attachments as described herein, the Department shall
record the purchaser's ownership of rights hereunder to the
vehicle and may authorize the dealer to issue a second thirty-day temporary
certificate of ownership registration. If the dealer does not
produce the certificate of title or certificate of origin to the vehicle before
the expiration of the second temporary certificate, the purchaser's
ownership of rights to the vehicle under this section may
terminate and he shall have the right to return the vehicle as provided in
subsection B of this section.
D. If the dealer is unable to produce the certificate of title
or certificate of origin to the vehicle within the sixty-day period from the
date of issuance of the first temporary certificate, the Department may extend
temporary ownership registration for an additional period of up
to ninety days, provided the dealer makes application in the format required by
the Department. If the dealer does not produce the certificate of title or
certificate of origin to the vehicle before the expiration of the additional
ninety-day period, the purchaser's ownership of rights hereunder to
the vehicle may terminate and he shall have the right to return the vehicle as
provided in subsection B of this section.
E. The Commissioner, on determining that the provisions of
this section or the directions of the Department are not being complied with by
a dealer, may suspend, after a hearing, the right of the dealer to issue
temporary certificates of ownership registration.