N.M. Code R. § 18.19.3.53

Current through Register Vol. 35, No. 9, May 7, 2024

Section 18.19.3.53 - SALVAGE-BRANDED TITLES - BRANDING OF TITLE

A. The procedures specified in 18.19.3.53 NMAC govern the transfer of title to a salvage or non-repairable vehicle.

B. Transfer to an insurance company: The steps below are to be followed when an insurance company takes title to a salvage vehicle or non-repairable vehicle in exchange for a payment to a person making a claim for vehicle damages.

(1) The insurance company or its authorized agent shall obtain the title or manufacturer's certificate of origin (MCO) for the vehicle and verify that the document is in the name of the former owner.

(2) The former owner or the former owner's authorized agent shall sign the title or MCO on the seller's release line. If a business was the former owner, the name of the business must appear with the signature of the business's owner, officer or agent.

(3) The name of the insurance company shall be entered in the purchaser section of the title or MCO.

(4) The insurance company shall apply for a salvage title or non-repairable certificate in its name before transferring title to the vehicle.

(5) The insurance company shall submit the endorsed title or MCO to the motor vehicle division, together with a written explanation of the reason for the branding. In the case of a salvage vehicle, a statement must be included of the costs of repair to make the vehicle safe for operation on the highways and the estimate of its fair market value immediately prior to damage. If the title was issued by a jurisdiction other than New Mexico, a copy of the title must be sent to the issuing jurisdiction with a completed "statement of loss".

C. Transfer to person other than an insurance company: The steps below are to be followed whenever the owner of a salvage vehicle or a non-repairable vehicle transfers title to any person other than an insurance company.

(1) The transferee will make reasonable efforts to verify that the title or manufacturer's certificate of origin (MCO) is properly in the name of the transferor.

(2) The transferor or transferor's authorized agent shall sign the title or MCO on the seller's release line. If a business is the transferor, the name of the business must appear with the signature of the business's owner, officer or agent.

(3) The name of the transferee shall be entered in the purchaser section of the title or MCO.

(4) If the title or MCO is not already branded with the word "SALVAGE" or "NON-REPAIRABLE", the transferor shall stamp or otherwise mark in ink the face of the title or MCO with the word "SALVAGE" or "NON-REPAIRABLE" in letters no less than one-half inch high, at an angle of approximately 45 degrees to the text of the title or MCO. The branding shall not cover the portion of the title or MCO which describes the vehicle.

(5) If the vehicle is a non-repairable vehicle, the owner may not transfer ownership to any person who is not a licensed auto recycler.

(6) The transferor shall submit a copy of the branded title or MCO to the motor vehicle division. If the title or MCO had not previously been branded with the word "SALVAGE" or "NON-REPAIRABLE", the transferor shall submit with the title or MCO a written explanation explaining the reason for the branding.

D. Once a title has been salvage-branded, all subsequent transfers of title must be by salvage-branded title. Once a non-repairable vehicle certificate has been issued for a vehicle, the motor vehicle division shall not issue further ownership certificates for that vehicle.

N.M. Code R. § 18.19.3.53

3/6/92, 7/19/94, 10/31/96; 18.19.3.53 NMAC - Rn & A, 18 NMAC 19.3.11.4, 9/14/00; A, 9/15/06