1. Certificate of salvage. When, by reason of its condition or circumstance, a vehicle for which a certificate of title has been issued by this State is declared a salvage vehicle:
A. By an insurer, the insurer or its designee shall surrender the certificate of title to the Secretary of State and apply for a certificate of salvage, in accordance with section 654, within 30 days of the settlement of the insurance claim; [PL 2003, c. 652, Pt. A, §5 (AMD); PL 2003, c. 652, Pt. A, §7 (AFF).]
B. By the owner of the vehicle, the owner shall surrender the certificate of title to the Secretary of State and apply for a certificate of salvage in accordance with section 654 prior to the transfer of the vehicle, unless the owner transfers the vehicle to a recycler licensed under this chapter; or [PL 1997, c. 776, §25 (AMD).]
C. By a towing company, if the towing company makes clear that the vehicle is a total loss, while claiming the vehicle pursuant to chapter 15, subchapter III. Any certificate of ownership issued to a towing company under section 1856, which the towing company has declared a total loss, must bear the legend "salvage vehicle." [PL 1997, c. 776, §25 (NEW).]
[PL 2003, c. 652, Pt. A, §5 (AMD); PL 2003, c. 652, Pt. A, §7 (AFF).]
2. Assignment of ownership. At the time the salvage vehicle is transferred, the insurer, the insurer's designee or the owner shall endorse the assignment of ownership on the certificate of salvage and surrender it to the transferee of the salvage vehicle. If a vehicle owner retains a salvage vehicle as part of a settlement with an insurer, the insurer shall comply with this section and endorse the assignment of ownership on the certificate of salvage and surrender it to the vehicle owner.
[PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]
3. Surrender and cancellation of certificate. Surrender and cancellation of a certificate of title or certificate of salvage must be as follows.
A. An owner who scraps or dismantles a vehicle shall surrender the certificate of title or certificate of salvage to the Secretary of State for cancellation within 30 days of that action. [PL 2019, c. 397, §14 (AMD).]
B. A person who acquires a vehicle to be scrapped or dismantled shall surrender the certificate to the Secretary of State within 30 days of that action. If an owner transfers a vehicle for which a certificate of salvage has not been issued to a salvage dealer, recycler or scrap processor licensed under chapter 9, the vehicle is deemed declared by the owner to be a salvage vehicle, and the salvage dealer, recycler or scrap processor shall immediately apply for a certificate of salvage for the vehicle in accordance with section 654 within 30 days, unless the vehicle's certificate of title is surrendered in compliance with this subsection. [PL 2019, c. 397, §14 (AMD).]
C. A person who repairs or rebuilds for operation on public ways a salvage vehicle shall comply with subsection 4 and shall:
(1) If the vehicle was not insured, obtain the certificate of title from the owner; or
(2) If the vehicle was insured, obtain a certificate of salvage or a certificate of title from the insurer and apply for a certificate of salvage. [PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]
D. A salvage dealer, recycler or scrap processor may retain possession of a certificate of salvage until the recycler scraps or dismantles the vehicle. Once a vehicle is scrapped or dismantled, the salvage dealer, recycler or scrap processor shall deliver the certificate of title or certificate of salvage to the Secretary of State for cancellation within 30 days of that action. [PL 2019, c. 397, §14 (NEW).]
E. Except in the case of a dismantled vehicle that has been repaired or rebuilt, a certificate of title or registration to a scrapped or dismantled vehicle may not be reissued. [PL 2019, c. 397, §14 (NEW).]
[PL 2019, c. 397, §14 (AMD).]
4. Repaired or rebuilt vehicle. If a salvage vehicle is repaired or rebuilt for operation on a public way, the vehicle may only be titled or registered for operation or offered for sale in this State if:
A. The identification number of the vehicle and its component parts are inspected and verified; and [PL 2001, c. 361, §23 (AMD); PL 2001, c. 361, §38 (AFF).]
B. [PL 2001, c. 361, §24 (RP); PL 2001, c. 361, §38 (AFF).]
C. If necessary, a new vehicle identification number is assigned. [PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]
Upon demand of the Secretary of State or a transferee, a repairer or rebuilder shall produce receipts of purchase of the vehicle or for component parts used in the repairing or rebuilding process, or both. If new parts are not used to rebuild a salvage vehicle, the rebuilder shall produce the vehicle identification number of the vehicles from which the parts were taken and the certificates of title or the certificates of salvage for the vehicles if not already surrendered. The repairer or rebuilder shall disclose, in writing, to the transferee of a repaired or rebuilt salvage vehicle the fact that the vehicle was a salvage vehicle and shall disclose what repairs were made to the vehicle.
The Secretary of State may refuse to title any vehicle declared to be salvage in another jurisdiction.
[PL 2009, c. 598, §30 (AMD).]
5. Distinctive. The following legends apply to certificates of title issued subsequent to issuance of certificates of salvage for vehicles.
A. [PL 1995, c. 645, Pt. A, §11 (RP); PL 1995, c. 645, Pt. A, §18 (AFF).]
B. The legend "rebuilt salvage" must appear on a certificate of title for a rebuilt salvage vehicle if:
(1) Two or more vehicles with different frames are joined;
(2) A salvage vehicle has 5 or more component parts replaced;
(3) A certificate of title with the legend "rebuilt salvage" issued by the Secretary of State or by any other jurisdiction accompanies an application to the State for a subsequent certificate of title; or
(4) A total vehicle loss has been repaired by the use of a front or rear clip. [PL 1995, c. 645, Pt. A, §12 (AMD).]
C. The legend "rebuilt" must appear on a certificate of title for a rebuilt salvage vehicle if:
(1) A salvage vehicle has at least one, but less than 5, component parts replaced. Notwithstanding section 602, subsection 2, for the purposes of this subsection, airbags are not considered a component part; or
(2) A certificate of title with the legend "rebuilt" issued by the Secretary of State or by any other jurisdiction accompanies an application to the State for a subsequent certificate of title. [PL 2001, c. 361, §25 (AMD); PL 2001, c. 361, §38 (AFF).]
D. If a salvage vehicle for which a certificate of title has been issued by this State with any of the legends described in this section is subsequently titled in another jurisdiction and later retitled in this State, any subsequent certificate of title from this State must also contain the legends appearing on the previous certificate of title from this State. [PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]
E. The legend "salvage" must appear on a certificate of title if:
(1) A vehicle has no marketable value other than the value of the basic material or parts used in the construction of the vehicle;
(2) A vehicle is sold with a stipulation that it is only to be used for the benefit of its parts; and
(3) A certificate of title previously issued by the Secretary of State or by any other jurisdiction bearing the legend "salvage" accompanies an application to the State of a subsequent certificate of title. [PL 1997, c. 437, §21 (NEW).]
F. The legend "repaired" must appear on a certificate of title for a repaired salvage vehicle if the vehicle is repaired as defined in section 602, subsection 12. [PL 1997, c. 776, §26 (NEW).]
The Secretary of State may apply a legend from a certificate of title issued by another jurisdiction to a subsequent title issued by this State.
[PL 2009, c. 598, §31 (AMD).]
6. Violation. A person who violates this section commits a Class D crime.
[PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]
7. Exemption. Certificates of title issued for manufactured housing and tiny homes are exempt from this section.
[PL 2019, c. 650, §7 (AMD).]
