2005 Idaho Code - 49-523 — PROCEDURE WHEN DEPARTMENT UNSATISFIED AS TO OWNERSHIP OR SECURITY INTERESTS -- TEMPORARY REGISTRATION PROCEDURE

                                  TITLE  49
                                MOTOR VEHICLES
                                  CHAPTER 5
                                VEHICLE TITLES
    49-523.  PROCEDURE WHEN DEPARTMENT UNSATISFIED AS TO OWNERSHIP OR SECURITY
INTERESTS -- TEMPORARY REGISTRATION PROCEDURE. (1) If the department is not
satisfied as to the ownership of the vehicle or that there are no undisclosed
security interests in it, the department may register the vehicle, but shall
either:
    (a)  Withhold issuance of a certificate of ownership until the applicant
    presents documents reasonably sufficient to satisfy the department as to
    the applicant's ownership of the vehicle and that there are no undisclosed
    security interests in it; or
    (b)  As a condition of issuing a certificate of ownership, require the
    applicant to file with the department all documents held as to the
    applicant's ownership of the vehicle, together with a bond in the form
    prescribed by the department and executed by the applicant, or a deposit
    of cash in a like amount. The bond shall be in an amount equal to one and
    one-half (1 1/2) times the value of the vehicle, as determined by the
    department, and conditioned to indemnify any prior owner and secured party
    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 ownership of the vehicle,
    or on account of any defect in or disclosed 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, or any cash
    deposit, shall be returned at the end of three (3) years, or prior to that
    time if the vehicle is no longer registered in this state and the current
    valid certificate of ownership is surrendered to the department, unless
    the department has been notified of the pendency of an action to recover
    on the bond.
    (c)  As to a vehicle ten (10) years old or more since manufacture, an
    applicant who is a resident of the state of Idaho may file with the
    department, before its authorized representative, a verified statement of
    facts setting out in detail the manner in which the applicant came into
    possession of the vehicle, the establishment of ownership, and a summary
    of the applicant's attempts to contact any prior owners of the vehicle.
    Upon receipt by the department of the verified statement and all
    documentation relating to the applicant's possession of the vehicle, and
    completion of an inspection of the vehicle identification number by an
    authorized representative of the department, the applicant shall execute a
    document in the form provided by the department releasing it of any and
    all damages that may be suffered by the applicant, along with warranties
    that the applicant will pay any and all damages suffered by any person or
    entity as to the issuance of a title for that vehicle by the department.
    The department shall then issue a certificate of title to the applicant in
    form set out by this section. The certificate of title shall include the
    statement, "ISSUED ON STATEMENT OF APPLICANT", in permanent letters upon
    its face. The title issued pursuant to this subsection shall be presumed
    to indicate legal ownership of the vehicle at the end of the three (3)
    year period from the date of issue of that title, provided the vehicle is
    still registered in the state of Idaho, and there are no actions or claims
    pending against the applicant which places legal ownership in question.
    The department and the state of Idaho shall be immune as to any damages
    suffered by any person or entity as a result of the issuance of a
    certificate of title as provided by this subsection.
    (2)  Every dealer desiring the privilege of issuing temporary registration
permits for the operation of vehicles shall make application to the
department. If the privilege is granted, the dealer will receive a series of
permits, consecutively numbered by the department, secured by the dealer at a
fee of five dollars ($5.00) for each permit. A permit subsequently issued by a
dealer to a purchaser shall be valid for a period not to exceed thirty (30)
days.
    The dealer shall issue temporary registration permits in numerical
sequence, one (1) only for each vehicle sold to a bona fide purchaser. Each
permit, and the attached stub, shall be completed in duplicate, in ink or by
typewriter at the time of issuance. The expiration date on the original permit
shall be filled in by rubber stamp or broad-tipped marking pen, and the print
shall be at least three-fourths (3/4) inch high and one-eighth (1/8) inch
wide. The original permit shall be displayed in the rear window of the vehicle
for which it is issued, except when issued for a convertible, station wagon,
motorcycle, or other vehicle for which this would not be practical. In these
exceptional cases, the permit should be conspicuously displayed in a place
where the number of the permit and the expiration date may be easily read and
where protected from exposure to weather conditions which would render it
illegible.
    (3)  The dealer shall keep a written record of every temporary
registration permit issued. This record shall include the name and address of
the person or firm to whom the permit is issued, a description of the vehicle
for which it is issued, including year, make, model, identification number,
and the date of issue. This record shall list all permits in numerical
sequence and shall be open to inspection by any peace officer or designated
employee of the department.
    (4)  The fees collected from dealers by the department under the
provisions of this section shall be transmitted by the department to the state
treasurer for deposit in the highway distribution account.
    (5)  Upon application for title and for registration of a vehicle for
which temporary registration has been issued under this section, the county
assessor shall collect and fees shall be deemed due from the date of issuance
of the temporary registration permit rather than from date of application for
title or registration.
    (6)  The department or a county assessor may issue temporary vehicle
registration permits in an emergency situation. The fee for a temporary
registration shall be five dollars ($5.00), and shall be valid for a period of
thirty (30) days. The temporary fees collected by the department shall be
transmitted to the state treasurer for deposit in the highway distribution
account. Temporary fees collected by an assessor shall be distributed as
follows: three dollars ($3.00) shall be deposited in the county current
expense fund and two dollars ($2.00) shall be transmitted to the department
for deposit through the state treasurer in the highway distribution account.