601 KAR 9:200. Registration and titling of rebuilt motor vehicles.

      RELATES TO: KRS Chapter 186A

      STATUTORY AUTHORITY: KRS 186.115, 186A.500-186A.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. This administrative regulation sets forth the procedures the Transportation Cabinet shall follow in issuing the certificate of title and printing a brand on the face of the motor vehicle title. The administrative regulation further sets forth procedures to be followed when the owner of a motor vehicle which has been assembled from parts of wrecked or salvage motor vehicles presents the rebuilt motor vehicle for registration and titling.

      Section 1. Vehicles from Other Jurisdictions. When the owner of a motor vehicle with a title from another jurisdiction applies for a Kentucky motor vehicle title, the county clerk receiving the application shall enter the following information relating to brands into the Automated Vehicle Information System:

      (1) If the brand on a foreign motor vehicle title relates to prior damage to and repair of a motor vehicle, the Kentucky title, when issued, shall bear the notation "rebuilt vehicle".

      (2) If a vehicle title bears both a brand as described in subsection (1) of this section and a "water damaged" brand as set forth in KRS 186A.530(4), the Kentucky title shall bear the notation "rebuilt vehicle".

      (3) If a vehicle certificate of title bears a brand relating to the previous use of the motor vehicle but not to damage to the motor vehicle, the Kentucky certificate of title shall not be branded.

      Section 2. Branding of Title Issued for a Rebuilt Motor Vehicle. (1) If a salvage certificate of title has been issued pursuant to KRS 186A.520 because of both physical damage and water damage to the motor vehicle, a title issued pursuant to KRS 186A.530(2) shall bear the notation "rebuilt vehicle".

      (2) If a vehicle with a salvage certificate of title issued pursuant to KRS 186A.520 is transferred within Kentucky or when 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 set forth in Section 3 of this administrative regulation.

      Section 3. Application for Title of Rebuilt Motor Vehicle. After a motor vehicle which has been assembled from parts of wrecked or salvaged vehicles and if the motor vehicle complies with all equipment and safety requirements of KRS Chapter 189, the owner may apply for registration or title of the motor vehicle. All applications for registration or title of a motor vehicle which has been assembled from parts from wrecked or salvaged motor vehicles shall be accompanied by the following:

      (1) The form required by KRS 186A.060, Vehicle Transaction Record. This form, TC 96-182 effective in July 1994, is incorporated by reference as part of this administrative regulation and shall contain an inspection certificate issued by a certified inspector in accordance with KRS 186A.115;

      (2) A completed Form TC 96-215, Affidavit of Motor Vehicle Assembled from Wrecked or Salvaged Motor Vehicles, revised February, 1986. This form is incorporated by reference as a part of this administrative regulation;

      (3) An address where the motor vehicle may be examined;

      (4)(a) A properly assigned certificate of title; or

      (b) If the vehicle owner does not have a certificate of title because the motor vehicle has not been through the titling process since the enactment of KRS Chapter 186A in 1983, a notarized affidavit fully explaining ownership of the vehicle which includes the following:

      1. Length of time the vehicle was owned by the current owner, but it 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. Statement of no liens against the vehicle.

      (5) A descriptive, notarized labor statement of repairs made and parts replaced;

      (6) An original receipt for each part purchased. Multiple parts may be listed on each receipt. The receipt shall include:

      (a) Seller's name;

      (b) Seller's address;

      (c) Seller's telephone number;

      (d) Date of part purchase;

      (e) Price of part purchased; and

      (f)1. Serial number of each part;

      2. Vehicle identification number of vehicle from which the part was taken; or

      3. A written comprehensive explanation of the reason why the part does not have a serial number.

      (7) If the motor vehicle is a motorcycle, a pencil tracing of both the motor identification number and frame identification number of the rebuilt motorcycle and the motorcycle from which parts were obtained.

      (8)(a) The license plate from the motor vehicle even if the plate has expired; or

      (b) A statement of why there is no longer a license plate for the rebuilt motor vehicle.

      (9) A separate federal odometer disclosure statement if unavailable on either the Application for Title/Registration or the back of the certificate of title. The separate form may be TC 96-5, Odometer Disclosure Statement, revised March, 1989 or its equivalent. Form TC 96-5 is hereby incorporated by reference.

      Section 4. Insurance Companies. (1) When an insured motor vehicle is paid for by an insurance company and the insurance company becomes the lawful owner of a stolen motor vehicle, the insurance company may 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 set forth in KRS 186A.335, the insurance company shall make an application for a salvage certificate of title.

      (3) If an insurance company has a theft-recovered motor vehicle for which the company applied and was issued a salvage certificate of title, but the motor vehicle does not meet the requirements of a salvage vehicle as set forth in KRS 186A.335, the insurance company may make application for a regular certificate of title. The application for certificate of title shall be made on form TC 96-182 required by KRS 186A.060 and shall include the following:

      (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 5. Recorded Lien Against Title. An application for a certificate of title to be issued pursuant to KRS 186A.530(2) shall be rejected by the Transportation Cabinet if there is a lien against the vehicle recorded in the Automated Vehicle Information System.

      Section 6. Additional Information which may be Required. (1) The Transportation Cabinet may require an inspection of a rebuilt motor vehicle by the Kentucky State Police if:

      (a) All documentation required by Section 3 of this administrative regulation is not available; or

      (b) A check of the National Crime Information Center computer identifies the motor vehicle as one with a nonconforming vehicle identification number.

      (2) If the repair documentation submitted in accordance with the requirements of Section 3 of this administrative regulation appears to be significantly less than seventy-five (75) percent of the value of the motor vehicle, the Transportation Cabinet may require:

      (a) A statement from the insurance company of the damage done to the motor vehicle; or

      (b) A salvage pool receipt which describes the damage to the motor vehicle.

      Section 7. Mistakenly Issued Brands. (1) When 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 may be submitted to the county clerk in accordance with KRS 186A.180.

      (2) The application for an updated or corrected certificate of title shall consist of the following documents:

      (a) A newly completed form TC 96-182 required by KRS 186A.060, Vehicle Transaction Record;

      (b) The certificate of title; and

      (c) An affidavit from the owner or statement from the county clerk which sets forth the nature of the error.

      (3) Production of a corrected certificate of title shall be carried out under the procedures required for those applicable to production of an original certificate of title pursuant to KRS Chapter 186A.

      Section 8. Material Incorporated by Reference. The material incorporated by reference may be viewed, copied, or obtained free of charge from any county clerk or the Transportation Cabinet's, Division of Motor Vehicle Licensing. The Division is located on the 2nd and 3rd floors of the State Office Building, 501 High Street, Frankfort, Kentucky 40622. The telephone number is (502) 564-5301. The business hours are 8 a.m. to 4:30 p.m. eastern time on weekdays. (21 Ky.R. 2000; Am. 2509; 2701; eff. 5-2-95.)