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2017 Maryland Code
Transportation
Title 13 - Vehicle Laws -- Certificates of Title and Registration of Vehicles
Subtitle 1 - Certificates of Title
§ 13-113.2. Transfers of new vehicles to and from dealers -- Two-stage vehicles
Universal Citation: MD Transp Code § 13-113.2 (2017)
- (a) Definitions. --
- (1) In this section the following words have the meanings indicated.
- (2) "Completed vehicle" means a two-stage vehicle that does not require any additional manufacturing operation to perform its intended function, except for the addition of readily attachable components or minor finishing operations.
- (3) "First-stage manufacturer" means:
- (i) Any person who manufactures an incomplete vehicle;
- (ii) Any person who distributes an incomplete vehicle of that manufacturer; and
- (iii) Any dealer who has a franchise for the particular make of the incomplete vehicle of that manufacturer.
- (4) "Incomplete vehicle" means an assemblage that:
- (i) Consists of at least a frame and chassis structure, power train, steering system, and braking system, to the extent that those systems are to be a part of the completed vehicle; and
- (ii) Requires additional manufacturing operations, other than the addition of readily attachable components or minor finishing operations, to become a completed vehicle.
- (5) "Minor finishing operations" includes painting, upholstering, or other cosmetic modifications.
- (6) "Readily attachable components" includes any mirror, extra light, or tire and rim assembly.
- (7) "Second-stage manufacturer" means:
- (i) A person who performs manufacturing operations on an incomplete vehicle so that it becomes a completed vehicle; and
- (ii) Any person who distributes a completed vehicle of that manufacturer.
- (8) "Two-stage vehicle" means a motor vehicle that requires manufacturing operations performed by two separate manufacturers to produce a completed vehicle capable of performing its intended function.
- (b) Transfers by manufacturers -- In general. -- Transfers of two-stage vehicles by manufacturers shall be made as provided in subsections (c) and (d) of this section.
- (c) Transfers by manufacturers -- Transfers from first-stage manufacturers to second-stage manufacturers. -- At the time that any first-stage manufacturer transfers to a second-stage manufacturer a new incomplete vehicle that is to be sold or registered in this State, the first-stage manufacturer shall give the second-stage manufacturer a manufacturer's certificate of origin for the incomplete vehicle, assigned to the second-stage manufacturer by the first-stage manufacturer.
- (d) Transfers by manufacturers -- Transfers from second-stage manufacturers to dealers. -- At the time that any second-stage manufacturer transfers to a dealer a new completed vehicle that is to be sold or registered in this State, the second-stage manufacturer shall give the dealer the manufacturer's certificates of origin issued by both the second-stage manufacturer and the first-stage manufacturer and assigned to the dealer by the second-stage manufacturer.
- (e) Transfers by dealers -- In general. -- Transfers of new completed vehicles by dealers shall be made as provided in subsections (f), (g), and (h) of this section.
- (f) Transfers by dealers -- In-State franchise required. -- Each dealer who holds a new completed vehicle for sale shall have a franchise in this State for the particular make of at least one stage of that vehicle.
- (g) Certain transfers without certificates permitted -- In general. -- If the dealer's franchise is for the make of only the first stage of the completed vehicle, the dealer may transfer the vehicle, without obtaining a certificate of title, by executing an assignment and warranty of title accompanied by the certificates of origin issued by the first-stage manufacturer and the second-stage manufacturer.
- (h) Certain transfers without certificates permitted -- Franchise for make of second stage of completed vehicle. -- If the dealer's franchise is for the make of only the second stage of the completed vehicle, the dealer may transfer the vehicle, without obtaining a certificate of title, by executing an assignment and warranty of title accompanied by the certificates of origin issued by the first-stage manufacturer and the second-stage manufacturer, if the certificate of origin issued by the first-stage manufacturer is assigned to the second-stage manufacturer.
- (i) Notice in contract of sale for completed vehicle. -- A dealer shall include in a contract for sale of a completed vehicle a notice in writing of:
- (1) The make and year of the first stage; and
- (2) The make, model, and year of the second stage.
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