Vermont Statutes Title 23 Sec. 2020
Terms Used In Vermont Statutes Title 23 Sec. 2020
- Commissioner: means the Commissioner of Motor Vehicles. See
- Fees: shall mean earnings due for official services, aside from salaries or per diem compensation. See
- Lienholder: means a person holding a security interest in a vehicle. See
- Owner: shall include any person, corporation, co-partnership, or association holding legal title to a motor vehicle or having exclusive right to the use or control thereof for a period of 30 days or more. See
- Person: includes any natural person, corporation, association, co-partnership, company, firm, or other aggregation of individuals. See
- Resident: as used in this title only, means any person living in the State who intends to make the State his or her principal place of domicile either permanently or for an indefinite number of years. See
- Security interest: means an interest in a vehicle reserved or created by agreement and which secures payment or performance of an obligation. See
- State: means a state, territory, or possession of the United States, the District of Columbia, the commonwealth of Puerto Rico, or a province of the Dominion of Canada. See
- Vehicle: means a motor vehicle as defined by section 4 of this title. See
§ 2020. Withholding of certificate; bond required
If the Commissioner is not satisfied as to the ownership of the vehicle or that there are no undisclosed security interests in it, the Commissioner may register the vehicle but shall either:
(1) Withhold issuance of a certificate of title until the applicant presents documents reasonably sufficient to satisfy the Commissioner as to the applicant’s ownership of the vehicle and that there are no undisclosed security interests in it.
(2) As a condition of issuing a certificate of title, require an applicant who is a Vermont resident to file with the Commissioner a bond in the form prescribed by the Commissioner and executed by the applicant, and either accompanied by the deposit of cash with the Commissioner or also executed by a person authorized to conduct a surety business in this State. The bond shall be in an amount equal to one and one-half times the value of the vehicle as determined by the Commissioner and conditioned to indemnify any prior owner and lienholder and any subsequent purchaser of the vehicle or person acquiring any security interest in it, and their respective successors in interest, against any expense, loss, or damage, including reasonable attorney’s fees, by reason of the issuance of the certificate of title of the vehicle or on account of any defect in or undisclosed security interest upon the right, title, and interest of the applicant in and to the vehicle. Any such interested person has a right of action to recover on the bond for any breach of its conditions, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. The bond, and any deposit accompanying it, shall be returned at the end of three years or earlier if the vehicle is no longer registered in this State and the currently valid certificate of title is surrendered to the Commissioner, unless the Commissioner has been notified of the pendency of an action to recover on the bond. The Commissioner shall not issue titles to nonresidents under the provisions of this subdivision. (Added 1969, No. 297 (Adj. Sess.), § 1, eff. Sept. 1, 1971; amended 2019, No. 131 (Adj. Sess.), § 213; 2023, No. 41, § 29, eff. July 1, 2023.)