Registration and Title Bulletin #119-03
| Date: |
October 8, 2003 |
| To: |
All County Tax Assessor-Collectors |
| Subject: |
Supplemental Information on Senate Bill 1507 |
PURPOSE
To provide you with supplemental information on Senate Bill 1507 as referenced
in Registration and Title Bulletin #99-03 and to provide a sample of the
limited Power of Attorney (POA) that will accompany title transactions
involving "balloon-note due" contracts. See the attached sample power
of attorney for General Motors Acceptance Corporation (GMAC).
DETAILS
The "balloon-note due" contract is a financing contract between a
lending institution and their customer for the purchase of a motor vehicle. The
vehicle is titled in the name of the customer with a lien recorded to the
lending institution, for example GMAC. One of the customer options given at the
end of the financing contract is to return the vehicle to an authorized dealer.
If this option is chosen, the title has to be properly assigned to the lending
institution along with the completion of an odometer disclosure statement.
Although the transfer of title may not include an odometer disclosure statement
made by the recorded owner, the POA may execute the disclosure based on
information provided by the recorded owner or, if no disclosure was provided to
the lending institution, to the best of that person’s knowledge.
COUNTY ACTION
County Tax Assessor-Collectors should accept title transfers with this limited
POA as part of the evidence of ownership. In addition to the properly assigned
title, the following additional documentation will be required:
-
A POA executed by the recorded owner on or after the date of contract, and
-
Written statement from lending institution confirming that the vehicle was
returned at the election of the owner and not as a result of remedies for
default.
Although this bulletin is providing an example of a GMAC balloon-note due
contract and POA, you will receive similar title transactions from other
lienholders. You are requested to accept and process these title transactions,
as well.
DEPARTMENT ACTION
Vehicle Titles and Registration Division (VTR) personnel that examine, process,
and issue titles should follow the instructions under COUNTY ACTION. The
Motor Vehicle Title Manual will be revised to include the GMAC limited POA in
the "FIGURES" section.
VTR CONTACT PERSON(S)
If you have any questions regarding this bulletin, please contact your local
VTR Regional Office. Thank you very much for your continued support.
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