CHAPTER 32 - MOTOR VEHICLES

AN ACT TO AMEND THE LAWS OF THE STATE OF DELAWARE IN RELATION TO THE IDENTIFICATION OF MOTOR VEHICLES, AS CONTAINED IN CHAPTER 9, VOLUME 35, AND IN CHAPTER 10, VOLUME 36, AND IN CHAPTER 11, VOLUME 37, AND IN CHAPTER 28, VOLUME 38.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That Section 1 of Chapter 9, Volume 35, and Section 35, Chapter 10, Volume 36, and Section 3, Chapter 11, Volume 37, and Section 1, Chapter 28, Volume 38, Laws of Delaware, be amended by striking out all of the said Sections and by inserting in lieu thereof the following to be known as Section 35 of the Motor Vehicle Laws of the State of Delaware:

Section 35. Application for a Certificate of Title:--(a) Every application for an original certificate of title shall be made upon the appropriate form furnished or approved by the Department and shall contain a full description of the motor vehicle including the name of the maker, the engine and serial numbers and any distinguishing marks thereon and whether the vehicle is new or used, together with a full and complete statement of each and all liens or encumbrances, if any, upon the said motor vehicle. The said application shall have permanently attached thereto a duplicate original of every conditional sale contract, chattel mortgage, lease, note or notes, or other like written agreement, if any, whereby any lien or encumbrance is sought to be secured upon the said motor vehicle. The said application shall also contain a statement of the name and address of the person, firm, or corporation to whom the certificate of title shall be delivered, and such other information as the Department may require. Every application shall be accompanied by a fee of One Dollar, which shall be in addition to any fee charged for the registration of such vehicle. Whenever a new motor vehicle is purchased from a dealer the application for a certificate of title shall also include a statement of transfer by the said dealer.

In the event that any claim of any kind is sought to be secured upon any motor vehicle, for which a certificate of title has been previously issued by the Department, and the said certificate remains outstanding and valid and no assignment of the said certificate has been made, or sought to be made, and no transfer of title or ownership or possession of the said motor vehicle is made or sought to be made, the said certificate of title shall be returned to the Department, together with the application for placing and recording of such claim as a lien or encumbrance upon the said motor vehicle. The said application shall be made upon the appropriate form furnished or approved by the Department, and shall have permanently attached thereto a duplicate original of any written instrument upon which the said claim is to be evidenced and whereby such claim is sought to be secured as a valid lien or encumbrance upon the said motor vehicle. Every application shall be accompanied by a fee of One Dollar, which shall be in addition to any other fees in this Article provided. Upon the filing of the said application and the entering of said claim, the certificate of title shall be returned to the person entitled to receive the same.

The Vehicle Commissioner is hereby authorized and directed to keep a permanent record in bound volumes of such liens or encumbrances hereinbefore mentioned and for making entry of same in said volumes the said Vehicle Commissioner shall make a charge of Fifty Cents, which shall be paid by the applicant.

Upon final payment being made on any lien or encumbrance so recorded, the holder of said lien or encumbrance either in person or by power of attorney shall satisfy the lien register in the office of the Vehicle Commissioner within thirty days from the date of final payment. When such liens or encumbrances have been fully paid by the owner of such motor vehicle and satisfied by the holders of the lien or encumbrance so recorded as aforesaid, such record of satisfaction shall be entered upon the certificate of title when presented at the office of the Vehicle Commissioner and for entering the satisfaction of said lien or encumbrance in the lien register in said office, the creditor shall pay to the said Vehicle Commissioner a fee of Twenty-five cents.

For failure to satisfy any lien or encumbrance within thirty days after final payment has been made, the lien holder shall be subject to a fine of not less than Five Dollars ($5.00) and not more than One Hundred Dollars ($100.00). Proceedings for enforcement of these provisions shall be made by the Vehicle Commissioner in the office of any Justice of the Peace in this State. Should any lien holder fail, refuse or neglect to satisfy any lien or encumbrance, so recorded as above provided, within sixty days after final payment thereon has been made, the Vehicle Commissioner, after due and timely notice given to said lien holder, shall have authority, upon the presentation of convincing evidence, which he shall retain in his office and file with the lien registrar, to satisfy such lien or encumbrance recorded in the lien register as herein-before provided.

Any lien recorded in favor of a firm or corporation which, since the recording of such lien, has dissolved, ceased to do business, or gone out of business for any reason whatsoever, and which shall remain of record as a lien of such firm or corporation for a period of more than three years from the date of the recording thereof in the office aforesaid, shall become null and void and of no further force and effect.

(b) The owner shall verify every application for a certificate of title before a person authorized to administer oaths. Officers and employees of the Department, designated by the Commissioner, are hereby authorized to administer oaths and it is their duty to do so without fee or compensation for the purpose of this Act.

(c) The Department shall maintain an engine number index of registered motor vehicles and, upon, receiving an application for a certificate of title, shall check the engine number shown in the application against said index and against the stolen and recovered motor vehicle index, required to be maintained by Section 43 of this Act.

Approved March 22, 1935.