§ 31-3.1-9 - Registration without certificate of title – Bond.
SECTION 31-3.1-9
§ 31-3.1-9 Registration withoutcertificate of title – Bond. – If the division of motor vehicles is not satisfied as to the ownership of thevehicle or that there are no undisclosed security interests in it, the divisionof motor vehicles may register the vehicle but shall either:
(1) Withhold issuance of a certificate of title until theapplicant presents documents reasonably sufficient to satisfy the division ofmotor vehicles as to the applicant's ownership of the vehicle and that thereare no undisclosed security interests in it; or
(2) As a condition of issuing a certificate of title, requirethe applicant to file with the division of motor vehicles a bond in the formprescribed by the division of motor vehicles and executed by the applicant, andeither accompanied by the deposit of cash with the division of motor vehiclesor also executed by a person authorized to conduct a surety business in thisstate. The bond shall be in the amount equal to one and one-half (1 1/2) timesthe value of the vehicle, as determined by the division of motor vehicles. Thisamount will be conditioned to indemnify any prior owner and lienholder and anysubsequent purchaser of the vehicle or person acquiring any security interestin it, and their respective successors in interest, against any expense, loss,or damage, including reasonable attorney's fees, by reason of the issuance ofthe certificate of title of the vehicle or an account of any defect in orundisclosed security interest upon the right, title, and interest of theapplicant in and to the vehicle. Any interested person has a right of action torecover on the bond for any breach of its conditions, but the aggregateliability of the surety to all persons shall not exceed the amount of the bond.The bond, and any deposit accompanying it, shall be returned at the end ofthree (3) years or prior to that time if the vehicle is no longer registered inthis state and the currently valid certificate of title is surrendered to thedivision of motor vehicles unless the division of motor vehicles has beennotified of the pendency of an action to recover on the bond.