2020 California Code
Vehicle Code - VEH
DIVISION 5 - OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS
CHAPTER 11 - Consumer Recovery Fund
The following definitions apply to this chapter:
(a) “Application” means an application to the recovery corporation for the payment of an eligible claim from the recovery fund that is filed with the recovery corporation after January 1, 2009.
(b) “Consumer” means a person who either (1) purchased or leased, or became obligated to purchase or lease, a motor vehicle to be used primarily for personal, family, or household purposes from a dealer or lessor-retailer licensed under this code, or (2) consigned for sale a motor vehicle that was used primarily for personal, family, or household purposes to a dealer licensed under this code.
(c) “Eligible claim” means an unsatisfied claim for economic loss, not barred by the statutes of limitation, that accrues after July 1, 2008, as a result of the failure of a dealer licensed under this code, or, if applicable, a lessor-retailer licensed under this code, to do any of the following:
(1) Remit license or registration fees received or contractually obligated to be paid from a consumer to the department.
(2) Pay to the legal owner of a vehicle transferred as a trade-in by a consumer to the dealer or lessor-retailer the amount necessary to discharge the prior credit balance owed to the legal owner.
(3) Pay to the lessor registered in accordance with Section 4453.5 of a vehicle transferred as a trade-in by a consumer to the dealer or lessor-retailer the amount the dealer or lessor-retailer agreed to pay to the lessor.
(4) Pay the amount specified in a consignment agreement to a consumer after the sale of a consigned vehicle.
(5) Provide a consumer who purchased a vehicle from the dealer or lessor-retailer with good title to the vehicle, free from any security interest or other lien, encumbrance, or claim, unless otherwise clearly and conspicuously provided for by the written sale agreement.
(6) Pay to a third party any amount received from, or contractually obligated to be paid by, a consumer for insurance, service contracts, or goods or services purchased through the dealer or lessor-retailer and to be provided by the third party.
(d) “Participant” means a dealer licensed under this code or a lessor-retailer licensed under this code.
(e) “Recovery corporation” means the Consumer Motor Vehicle Recovery Corporation.
(f) “Recovery fund” means the consumer recovery fund established by the recovery corporation pursuant to Section 12203 for the payment of eligible claims.
(Amended by Stats. 2013, Ch. 392, Sec. 3. (AB 501) Effective January 1, 2014.)