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.
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, 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 encumbrances 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 Secretary of State 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 Secretary of State 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 Secretary of State within thirty days from the date of final payment. When such liens or encumbranches 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 Secretary of State and for entering the satisfaction of said lien or encumbrance in the lien register in said office, the creditor shall' pay to the said Secretary of State 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 ($100.00). Proceedings for enforcement of these provisions shall be made by the Secretary of State 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 Secretary of State, 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 hereinbefore provided.
(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.
Section 2. That Section 36 of Chapter 10, Volume 36, Laws of Delaware be amended by striking out all of the said Section 36, and by inserting in lieu thereof the following to be known as Section 36 of the Motor Vehicle Laws of the State of Delaware.
Section 36. (a) The Department, when satisfied that the applicant for a certificate of title is the owner of the motor vehicle, shall thereupon issue, in the name of the owner, said certificate bearing a serial number and the signature of the Vehicle Commissioner of this State, under the seal of his office. The certificate of title shall also set forth the date of issue and description of the vehicle as determined by the application for said certificate together with a full and complete statement of each and all liens or encumbrances on said motor vehicle as evidenced by the duplicate original of any conditional sale contract, chattel mortgage, lease, note or notes, or other like written agreement attached to said application. The certificate of title shall contain upon the reverse side, forms for assignment and reassignment of title, or interest and warranty thereof, by the owner of the motor vehicle together with form of application for new certificate of title with space for notation of liens and encumbrances upon such vehicle at the time of transfer and of application for new certificate of title, and said certificate shall be delivered by the Department to the person designated for that purpose on the application.
Liens or encumbrances on a motor vehicle, properly set out in the application for a certificate of title to which application has been securely attached, as hereinbefore provided, the duplicate original of the conditional sale contract or chattel mortgage, duly recorded in accordance with the law governing the same, or lease, or note or notes, or any like written agreement, if any, whereby any such liens or encumbrances are sought to be secured on a motor vehicle, shall for all purposes and intents be valid and prior liens upon such motor vehicle from the date of the issuance of the certificate of title; provided, nevertheless, that if there be more than one such lien on any one motor vehicle, then and in such event, such liens shall have priority according to the dates of the written documents attached to the said application as aforesaid as evidence of such claims; and such liens and encumbrances, entered upon the certificate of title and recorded in the lien register, as hereinbefore provided, shall be notice to all creditors, of whatever description, that such liens or encumbrances exist against such motor vehicle.
No claim of any kind shall be entered upon the certificate of title for any motor vehicle, to be issued by the provisions of this Act, until the applicant has fully complied with all the provisions of this and the preceding section insofar as the same may be applicable thereto.
(b) The said certificate of title shall be good for the life of the motor vehicle so long as the same is owned or held by the original holder of such certificate.
Section 3. This Act, upon its approval, shall be cited as a part of the Motor Vehicle Laws of the State of Delaware, and all Acts or parts of Acts inconsistent herewith are hereby repealed to the extent of the inconsistencies only.
Approved June 1, 1933.