AN ACT TO AMEND CHAPTER 39, TITLE 25, DELAWARE CODE, TO ESTABLISH A SPECIAL FUND FOR BALANCES FROM LIENHOLDER SALES AND TO REQUIRE A LIENHOLDER TO FILE WITH THE COURT A DISPOSITION OF PROCEEDS FORM AS A CONDITION TO RECEIVING TITLE TO THE VEHICLE SOLD.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Subsection (b) of 53905, Title 25, Delaware Code, by striking the said Subsection (b) in its entirety and substituting in lieu thereof a new Subsection (b) to read as follows:
"(b) The proceeds of the sale shall be applied to the discharge of the lien and the cost of keeping and selling the property. The balance, If any, of the proceeds of the sale shall be deposited not later than 10 days from the date of the sale with the court to be applied by the court to the payment of any lien or security interest to which the property may be subject in the order of their priority, with any remaining proceeds to be paid to the owner or owners of the property sold but, in case such owner or owners cannot be found, such balance shall be turned over to the State Treasurer not later than 60 days from the date of the sale who shall create a special fund thereof and who shall pay to the owner the monies left if a claim Is made within 1 year of the sale, or deposit the monies in the General Fund If no claim is made within 1 year of the sale."
Section 2. Amend §3905, Title 25, Delaware Code, by adding a new Subsection (c) to said 53905 to read as follows:
"(c) In every lien sale authorized under the provisions of this Chapter, It shall be the duty of the Henholder to complete and file with the court a Disposition of Proceeds Form, Justice of the Peace Civil Form No. 48, within 10 days from the date of the sale. No transfer of or new certificate of title to the vehicle sold or salvage certificate shall be issued by the Division of Motor Vehicles without proof of the filing of said Disposition of Proceeds Form with the court within the required time period. A copy of the Disposition of Proceeds Form sealed with the court's seal shall constitute sufficient proof of filing."