NORTH CAROLINA GENERAL ASSEMBLY
1975 SESSION

CHAPTER 799
HOUSE BILL 944

AN ACT TO REWRITE G.S. 20-109.1 RELATING TO SALVAGE VEHICLE TITLES.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 20-109.1 is hereby rewritten to read as follows:
"§ 20-109.1.  Surrender of titles to salvage vehicles. — (a) A vehicle shall be deemed to be a salvage vehicle:
(1)	When an insurance company as a result of having paid a total loss claim acquires title to a vehicle, and obtains possession or control of a vehicle, for any cause other than theft; or
(2)	When an insurance company has acquired title to and obtains possession of a vehicle in settlement of a theft loss claim, and upon recovery of the vehicle it is determined that the vehicle has been damaged to the extent that it would be considered a total loss under the provisions of comprehensive and collision insurance.
If the salvage vehicle was registered in North Carolina, or if the loss or damages occurred in North Carolina, or if the sale of the salvage vehicle takes place in North Carolina then the insurance company or their authorized agent shall within ten days after payment of a total loss claim forward to the Department of Motor Vehicles the certificate of title or the comparable ownership document issued by the jurisdiction wherein the vehicle was last registered. The certificate of title or comparable ownership document shall be properly assigned to the insurance company by the vehicle owner. Subsequent transfers of ownership shall be on forms provided by the department; and such forms shall be mailed by the department to the insurance company at the address furnished in the assignment of title from the registered owner, unless otherwise requested in writing by the insurance company or their authorized agent. The insurance company shall make an assignment of ownership on the form and deliver it to the purchaser upon sale of the salvage vehicle. The forms shall be considered as proof of ownership for the purpose of G.S. 20-61. In the event the salvage vehicle is rebuilt, an application for reissuance of the title shall be made on a form prescribed by the department, and the application shall be accompanied by such supporting information as the department may require.
(b)	Any person acquiring or having possession of any salvage vehicle, purchased in those states that do not require the surrender of titles to salvage vehicles shall within ten days following delivery of the vehicle and title forward to the department the certificate of title or comparable ownership document issued by the jurisdiction wherein the vehicle was last registered, with properly executed assignments and reassignments of such title or ownership document. Subsequent transfers of ownership and reissuance of the title shall be as provided for in subsection (a) hereof.
(c)	Except when operated by or at the direction of the commissioner or his designee, no person shall operate a salvage vehicle prior to compliance with department requirements prerequisite to application for reissuance of a title. The rebuilt salvage vehicle may be operated following completion of the required examination and certification, provided the operation shall be in compliance with G.S. Chapter 20.
(d)	A violation of any provision of this section shall constitute a misdemeanor punishable by a fine of not more than one hundred dollars ($100.00) or imprisonment for not more than two years, or both, in the discretion of the court."
Sec. 2.  This act shall become effective upon ratification.
In the General Assembly read three times and ratified, this the 24th day of June, 1975.