RELATES TO: KRS 186.115, 186A.170(1)(b), 186A.510-186A.990
STATUTORY AUTHORITY: KRS 186A.530(11), 186A.550
NECESSITY, FUNCTION, AND CONFORMITY: KRS 186A.530 requires the Transportation Cabinet to issue a certificate of title with a brand printed on the face of the title if the vehicle has been rebuilt or has a branded certificate of title from another jurisdiction. KRS 186A.530(11) requires the Transportation Cabinet to promulgate administrative regulations regarding the administration of the title branding procedure, which requirements shall provide for the manner in which salvage titles and rebuilt brands on vehicles previously declared unrebuildable by another state are differentiated from other salvage titles and rebuilt brands. This administrative regulation establishes the procedures for issuing the certificate of title and printing a brand on the face of the motor vehicle title. The administrative regulation also establishes the procedures for registration and titling of a rebuilt motor vehicle that has been assembled from parts of wrecked or salvage motor vehicles.
Section 1. Definition. “Confidential inspection” means an inspection of a distinguishing number assigned and permanently affixed to a vehicle or vehicle component, such as an engine or transmission or other severable portion of a vehicle, and not readily viewable by general observation.
Section 2. Application for a Kentucky Salvage Title. (1) A Kentucky salvage title shall be issued for a wrecked or damaged vehicle if the total estimated cost of repair exceeds seventy-five (75) percent of the retail value of the vehicle.
(2) An applicant for a salvage title shall submit an Application for Kentucky Certificate of Title or Registration, TC Form 96-182, to the county clerk.
(3) If a vehicle with a salvage certificate of title issued pursuant to KRS 186A.520 is transferred within Kentucky or if a vehicle with similar title from another jurisdiction is transferred into Kentucky, the new certificate of title shall be another salvage certificate of title until the owner of the motor vehicle has successfully gone through the process established in Section 4 of this administrative regulation.
(4) An application for a certificate of title shall be rejected by the Transportation Cabinet if there is a lien against the vehicle recorded in the Automated Vehicle Information System or Kentucky Automated Vehicle Information System.
(5) An application for a salvage or rebuilt title shall not be processed through "speed title" as established in KRS 186A.170(1)(b).
Section 3. Vehicles from Other Jurisdictions. (1) If the owner of a motor vehicle with a title from another jurisdiction applies for a Kentucky motor vehicle title, or a title and registration, the county clerk receiving the application shall enter the following information relating to brands into the Automated Vehicle Information System or Kentucky Automated Vehicle Information System:
(a) If the brand on a foreign motor vehicle title relates to prior damage to and repair of a motor vehicle, the Kentucky title, if issued, shall bear the notation "rebuilt vehicle".
(b) If a vehicle title bears both a "rebuilt" brand and a "water damaged" brand as established in KRS 186A.530(4), the Kentucky title shall bear the notation "rebuilt vehicle water damaged".
(2) If a vehicle certificate of title bears a brand relating to the previous usage of the motor vehicle but not to damage to the motor vehicle, the Kentucky certificate of title shall not be branded.
Section 4. Application for Title of Rebuilt Motor Vehicle. (1) An owner of a motor vehicle that has been assembled from parts of wrecked or salvaged vehicles may apply for registration and title. If the owner applies for registration and title, the motor vehicle shall comply with the equipment and safety requirements of KRS Chapter 189.
(2) An application for registration and title of a motor vehicle that has been assembled from parts of wrecked or salvaged motor vehicles shall be accompanied by:
(a) A completed Application for Kentucky Certificate of Title and Registration, TC Form 96-182;
(b) A completed Affidavit of Motor Vehicle Assembled from Wrecked or Salvaged Motor Vehicles, TC Form 96-215;
(c) An address where the motor vehicle may be examined;
(d) An assigned certificate of title; or
(e) A notarized affidavit that explains the ownership of the vehicle including:
1. Length of time the vehicle was owned by the current owner, which shall be a minimum of five (5) years;
2. Where and from whom the vehicle was purchased;
3. When and where the vehicle was last registered or licensed; and
4. A statement that there are no liens against the vehicle;
(f) A descriptive, notarized labor statement of repairs made and parts replaced;
(g) An original receipt for each part purchased. Multiple parts may be listed on one (1) receipt. The receipt shall include:
1. Seller's name;
2. Seller's address;
3. Seller's telephone number;
4. Date of part purchase;
5. Price and serial number of part purchased; and
6.a. Vehicle identification number of vehicle from which the part was taken; or
b. A written comprehensive explanation of the reason why the part does not have a serial number;
(h) If the motor vehicle is a motorcycle, a pencil tracing or picture of the motor identification number and frame identification number of the rebuilt motorcycle and the motorcycle from which parts were obtained;
(i)1. The license plate from the motor vehicle even if the plate has expired; or
2. A statement of why there is no longer a license plate for the rebuilt motor vehicle;
(j)1. A separate federal odometer disclosure statement if unavailable on either the Application for Title orRegistration or the back of the certificate of title. An Odometer Disclosure Statement, TC Form 96-5 may be used; and
2. A title issued pursuant to KRS 186A.530(2) bearing the notation "rebuilt vehicle".
Section 5. Insurance Companies. (1) If an insurance company becomes the lawful owner of a stolen motor vehicle, the insurance company shall make application in the name of the company for a regular title.
(2) If the motor vehicle is subsequently recovered and damage to the motor vehicle meets the requirements of a salvage vehicle as established in KRS 186A.520, the insurance company shall make an application for a salvage certificate of title.
(3) If an insurance company has been issued a salvage certificate of title for a vehicle recovered in a theft, but the motor vehicle does not meet the requirements for a salvage vehicle established in KRS 186A.520, an insurance company may apply for a regular certificate of title.
(4) An insurance company shall apply for title by using Application for Kentucky Certificate of Title or Registration, TC Form 96-182. The application shall include:
(a) The assigned certificate of title; and
(b) Verification on the company letterhead that the motor vehicle is a theft recovery and a description of the damage to the motor vehicle.
Section 6. Additional Information. (1) The Transportation Cabinet shall require a confidential inspection of a rebuilt motor vehicle by the Kentucky State Police if:
(a) The documentation required by Section 4 of this administrative regulation is not available; or
(b) A check of the National Crime Information Center identifies the motor vehicle as stolen and a check of the Vehicle Identification Number Analysis, "VINA," identifies the motor vehicle as having a nonconforming vehicle identification number.
(2) If the repair documentation submitted in accordance with the requirements of Section 4 of this administrative regulation is less than seventy-five (75) percent of the value of the motor vehicle, the Transportation Cabinet shall require a:
(a) Written statement from the insurance company of the damage done to the motor vehicle; or
(b) Salvage pool receipt that describes the damage to the motor vehicle.
Section 7.. Mistakenly Issued Brands. (1) If a certificate of title is branded due to an error by the county clerk or the Department of Vehicle Regulation, an application for an updated or corrected title shall be submitted to the county clerk as established in KRS 186A.180.
(2) An application for an updated or corrected certificate of title shall consist of the following documents:
(a) An Application for Kentucky Certificate of Title or Registration, TC Form 96-182;
(b) The certificate of title; and
(c) An affidavit from the owner or a statement from the county clerk which that describes the nature of the error.
Section 8.. Incorporation by Reference. (1) The following material is incorporated by reference:
(a) "Application for Kentucky Certificate of Title or Registration", TC Form 96-182, November, 2012;
(b) "Affidavit of Motor Vehicle Assembled from Wrecked or Salvaged Motor Vehicles", TC Form 96-215, May, 2013; and
(c) "Odometer Disclosure Statement", TC Form 96-5, May, 2013.
(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Transportation Cabinet Building, Division of Motor Vehicle Licensing, 200 Mero Street, Frankfort, Kentucky 40622, or on the cabinet's web site at mvl.ky.gov. This material may also be obtained at the office of a Kentucky county clerk. (21 Ky.R. 2000; Am. 2509; 2701; eff. 5-2-1995; 40 Ky.R. 130; 863; 1067; eff. 12-6-2013.)