Time: Tue Mar 18 06:31:49 1997
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Tue, 18 Mar 1997 06:10:55 -0700 (MST)
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Date: Tue, 18 Mar 1997 06:27:10 -0800
To: timr@efn.org
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: Manufacturer's Statement of Origin
At 11:52 PM 3/17/97 -0800, you wrote:
>Dear Paul,
>
>Take a look at this and see if you think it says what I think it says.
>I think that this California statue in the CVC is telling the dealers
>that they are required to send the MSO/MCO to the state unless the
>original purchaser demands in writing that the dealer give it to him.
>At the time of original sale, the only "certificate of ownership" that
>exists is the MSO/MCO. Am I right? What do you think?
Yes, that is exactly my understanding
of the situation.
/s/ Paul Mitchell
>
>
>5753. It is unlawful for any person to fail or neglect properly to
>endorse, date, and deliver the certificate of ownership and, when
>having possession, to deliver the registration card to a transferee
>who is lawfully entitled to a transfer of registration. Except when
>the certificate of ownership is demanded in writing by a purchaser, a
>vehicle dealer licensed under this code shall satisfy the delivery
>requirement of this section by submitting appropriate documents and
>fees to the department for transfer of registration in accordance
>with Sections 5906 and 4456 of this code and rules and regulations
>promulgated thereunder.
>
>My comments:
>I believe that the only thing that this "certificate of ownership" could
>be (as far as a new car is concerned) is the Title from the
>manufacturer.
>
>
>5906. When the transferee of a vehicle is a dealer who holds the
>same for resale and operates or moves the same upon the highways
>under special plates, the dealer is not required to make application
>for transfer, but upon transferring his title or interest to another
>person he shall comply with this division.
>
>My comments:
> Here are the instructions to dealers. Section (a)(2) leaves out any
>mention of a "certificate of ownership" whereas section (a)(3) which
>deals exclusively with used vehicles mentions a "certificate of title".
>
>
>
>4456. (a) When selling a vehicle, dealers and lessor-retailers
>shall use numbered report-of-sale forms issued by the department.
>The forms shall be used in accordance with the following terms and
>conditions:
> (1) The dealer or lessor-retailer shall attach for display a copy
>of the report of sale on the vehicle before the vehicle is delivered
>to the purchaser.
> (2) The dealer or lessor-retailer shall submit to the department
>an application accompanied by all fees and penalties due for
>registration or transfer of registration of the vehicle within 30
>days from the date of sale if the vehicle is a used vehicle, and 20
>days if the vehicle is a new vehicle. Penalties due for
>noncompliance with this paragraph shall be paid by the dealer or
>lessor-retailer. The dealer or lessor-retailer shall not charge the
>purchaser for the penalties.
> (3) As part of an application to transfer registration of a used
>vehicle, the dealer or lessor-retailer shall include all of the
>following information on the certificate of title, application for a
>duplicate certificate of title, or form prescribed by the department:
>
> (A) Date of sale and report of sale number.
> (B) Purchaser's name and address.
> (C) Dealer's name, address, number, and signature or signature of
>authorized agent.
> (D) Salesperson number.
> (4) If the department returns an application and the application
>was first received by the department within 30 days of the date of
>sale of the vehicle if the vehicle is a used vehicle, and 20 days if
>the vehicle is a new vehicle, the dealer or lessor-retailer shall
>submit a corrected application to the department within 50 days from
>the date of sale of the vehicle if the vehicle is a used vehicle, and
>40 days if the vehicle is a new vehicle, or within 30 days from the
>date that the application is first returned by the department if the
>vehicle is a used vehicle, and 20 days if the vehicle is a new
>vehicle, whichever is later.
> (5) If the department returns an application and the application
>was first received by the department more than 30 days from the date
>of sale of the vehicle if the vehicle is a used vehicle, and 20 days
>if the vehicle is a new vehicle, the dealer or lessor-retailer shall
>submit a corrected application to the department within 50 days from
>the date of sale of the vehicle if the vehicle is a used vehicle, and
>40 days if the vehicle is a new vehicle.
> (6) An application first received by the department more than 50
>days from the date of sale of the vehicle if the vehicle is a used
>vehicle, and 40 days if the vehicle is a new vehicle, is subject to
>the penalties specified in subdivisions (a) and (b) of Section
>4456.1.
> (7) The dealer or lessor-retailer shall report the sale pursuant
>to Section 5901.
> (b) (1) A transfer that takes place through a dealer conducting a
>wholesale motor vehicle auction shall be reported to the department
>by that dealer on a single form approved by the department. The
>completed form shall contain, at a minimum, all of the following
>information:
> (A) The name and address of the seller.
> (B) The seller's dealer number, if applicable.
> (C) The date of delivery to the dealer conducting the auction.
> (D) The actual mileage of the vehicle as indicated by the vehicle'
>s odometer at the time of delivery to the dealer conducting the
>auction.
> (E) The name, address, and occupational license number of the
>dealer conducting the auction.
> (F) The name, address, and occupational license number of the
>buyer.
> (G) The signature of the dealer conducting the auction.
> (2) Submission of the completed form specified in paragraph (1) to
>the department shall fully satisfy the requirements of subdivision
>(a) and subdivision (a) of Section 5901 with respect to the dealer
>selling at auction and the dealer conducting the auction.
> (3) The single form required by this subdivision does not relieve
>a dealer of any obligation or responsibility that is required by any
>other provision of law.
> (c) A vehicle displaying a copy of the report of sale may be
>operated without license plates or registration card until the
>license plates and registration card are received by the purchaser.
>
>
>--
>timr@efn.org
>(541) 895-4417 voice
>(541) 895-4681 FAX
>
> ***************************************************************
> "The battle, Sir, is not to the strong alone; it is to the
> vigilant, the active, the brave. Besides, Sir, we have no
> election. If we were base enough to desire it, it is now too
> late to retire from the contest. There is no retreat but in
> submission and slavery! Our chains are forged! Their clanking
> may be heard on the plains of Boston! The war is inevitable;
> and let it come! I repeat, Sir, let it come!"
> --Patrick Henry (1736-1799) in his famous "The War
> Inevitable" speech, March, 1775
> ***************************************************************
> A lie on the throne is a lie, still, and truth in a dungeon is
> truth, still; and a lie on the throne is on the way to defeat,
> and truth in a dungeon is on the way to victory." --Anonymous.
> ***************************************************************
>
>
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Paul Andrew, Mitchell, B.A., M.S. : Counselor at Law, federal witness
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