What’s in this License Bulletin?

• MV-217A (1-09) Information
• Revised Forms and Fact Sheets
• Agent Service Training
• Safety Insp. Bulletin BI09-4
• OLRS Information/Procedures

MV-217A (1-09) INFORMATION
A review of a memorandum dated August 10, 2009, from Wendy Cobb, Manager, Manager, Messenger Services is listed below which pertains to MV-217 and MV-217A transactions that are submitted to PennDOT for processing.

This memo is a follow-up to the January 20, 2009 memo regarding Form MV-217A, edition date 1-09 which referred to the revised Form MV-217A, but did not go into detail about processing or issuing a plate.

The MV-217A (1-09) edition does not require the repossessor to attach any documentation, such as notice of intent to repossess a vehicle, etc. The MV-217A (1-09) now allows for the repossessor to self-certify they have all the required repossession documentation in their possession. The repossessor must sign in Section F as the repossessor and must also sign in Section G for the self-certification. It is not a requirement that the repossessor check the blocks on the reverse side of the MV-217A application. These check blocks are for the convenience of the repossessor to ensure they have the correct documentation.

In addition, agents may no longer complete and attach Form MV-120, "Temporary Cardboard Intransit Registration Plate or Temporary Registration Transfer Card" to issue or transfer a registration plate to a repossessed vehicle. Registration plates must now be issued by the Department.

Should the applicant wish to have a registration plate issued to the vehicle, they must complete and attach Form MV-140, "Application for Registration" and pay all applicable fees. Should the applicant wish to transfer a registration plate, the applicant will be required to submit the MV-217A application requesting "title only" first. Once the "title only" application has been processed and the customer receives their Certificate of Title, they may request an agent to complete Form MV-120 to transfer a registration plate to the vehicle.

MV-217 - Instructions when PennDOT processes it

There are 3 types of repossession actions:

1. Judgment and Execution
2. Non-judicial sale or repossession and retention (UCC)
3. Court Order

NOTE: All of these actions require Form MV-1 to be competed and submitted with the MV-217 (must be signed by the applicant) and other required documents.

Under Option 1 – Judgment and Execution
This is used by an individual or a business listed as a lien holder on a certificate of title, but they are NOT licensed with the Department of Banking, and they want to “recoup” their monies. NOTE: If they want to take possession of the vehicle, they would need to follow option #3, Court Order.

• Applicant must go to a district court and file a judgment against the vehicle owner.
• Once the judgment is entered, a “Writ of Execution” is issued by the district court and provided to the Sheriff. This Writ of Execution is an order, directing the sheriff to seize certain property of the debtor and sell it in a manner prescribed by law.
• The vehicle is sold at a sheriff or constable sale.

This option only allows the lien holder to recoup their monies due and the vehicle is sold and transferred to the purchaser by completing the following:

• MV-1
• MV-217
• Bill of sale from sheriff or constable sale – showing date of sale, make, VIN and name of purchaser
• Certified copy of Judgment and Writ of Execution OR the court order of the sale
• Certificate of title, if available. If not available, an affidavit is required explaining why.
• Documentation that any existing lien is satisfied
• Appropriate fees for title, registration and sales tax

Most common reasons for rejections on these types of applications are:

• The Judgment and Writ of Execution are photocopies. They must be certified copies.
• The bill of sale does not contain the VIN number. These must be vehicle specific.
• PennDOT does not receive documentation that the lien was satisfied with the MV-217. This can either be in the form of a letter from the lien holder or MV-38L, satisfying the lien.

MV-217A - Option 1 – Title to Lien Holder
Click here to download the document in PDF Format (requires Free Adobe Reader)

Under Option 2 – Non-judicial sale or repossession and retention (UCC)
This option is done under the Uniform Commercial Code (UCC) guidelines. There are 2 ways to use the option for a Non-judicial sale or repossession and retention.

1. Under the UCC – use Form MV-217 – This instance is when the vehicle was used as collateral. Many times Credit Unions fall under this option. These types of lien holders do not fall under the Motor Vehicle Sales and Finance Act (MVSFA) because the lien holder does not have a Financial Institution Number (FIN).
   
   These types of loans are structured similarly to the MVSFA, but slightly different.
   
   
2. Under the MVSFA – use Form MV-217A – these types of lien holders usually have “installment sales” contracts. They would have a FIN/DIN number. The lien holders will know which way they need to file.

Items required for transfer of ownership under the UCC:

• Completed Form MV-1
• Verification of the Vehicle Identification Number
• Completed Form MV-217
• Certificate of title when the lien is recorded on the title OR the original or acceptable copy of the filed financing statement
• Original or certified copy of the agreement which is the basis to repossess the vehicle
• Original or acceptable copy of the notice of intention to sell which was mailed to the debtor
  • If the vehicle is being sold at a public sale, the notice must have time and place of sale.
  • If the vehicle is being sold at a private sale, the notice must have time of sale.
• Bill of sale that lists the date of sale, make and VIN of vehicle and name of purchaser if not the lien holder
• Appropriate fees for title, registration and sales tax

MV-217A - Option 2 – Title to Dealer
Click here to download the document in PDF Format (requires Free Adobe Reader)

MV-217A - Option 2 – Title to Individual
Click here to download the document in PDF Format (requires Free Adobe Reader)

Under Option #3 – Court Order
This is used by a lien holder who is not recorded on the title or who is not licensed by the Department of Banking and they want to take ownership of the vehicle.
Items required for transfer of ownership:

• Completed Form MV-1 (NOTE: The person listed on the court order/bill of sale at the sheriff or constable sale, must be listed on the MV-1 as the applicant)
• Verification of the Vehicle Identification Number
• Completed Form MV-217
• Certified copy of the court order from the Court of Common Pleas, listing the make and VIN of the vehicle and the name of the person the court is awarding ownership of the vehicle
• Proof that a notice of the proceedings was given to the prior owner and any other person who has an interest in the vehicle
• Original title if available. (NOTE: If the title is not available, documentation explaining why it is not available must be attached)

Refer to the last article “OLRS Information/Procedures” in this license bulletin, for information about on-line processing of repossession transactions.

MV-217A - Option 3 – Mobile Home
Click here to download the document in PDF Format (requires Free Adobe Reader)

REVISED FORMS AND FACT SHEETS
The following forms and fact sheets have been revised and are available on PennDOT’s website.

Forms

1. MV-11 (6-09)
2. MV-63 (6-09

Fact Sheet

1. PUB 195-NC (July 09) - Identification and Legal Presence Requirements for Non-United States Citizens

The fact sheet “Forms MV-217 and MV-217A” is currently being revised to remove information on that fact sheet that says an issuing agent may issue a temporary plate on Form MV-120 and submit it with Form MV-217A.

Current List of Bureau Fact Sheets
Click here to access the document

Motor Vehicle and Driver License Forms
Click here to download the document in PDF Format (requires Free Adobe Reader)

AGENT SERVICE TRAINING
The Advanced Agent Service training class that was scheduled to be held at the PA AAA Federation, Harrisburg, PA, on September 18, 2009 has been changed to September 22, 2009 - 10:00 a.m. to 3:00 p.m. Please contact Carol L. Trego for details if you are interested in attending the class.

Our Basic and Advanced On-Line Agent Service training courses has material included that is in PennDOT’s Agent Service 2009-2010 training manuals. We offer the on-line agent service training courses to AAA club staff members at a reasonable rate which allows you to take the on-line training in the convenience of your office and as time permits. If interested, go to our website at http://www.aaapa.org/ to sign up with a credit card to take an on-line training course.

SAFETY INSP. BULLETIN #BI09-4
Included with this license bulletin is PennDOT’s Safety Inspection Bulletin # BI09-4.

Safety Inspection Bulletin # BI09-4
Click here to download the document in PDF Format (requires Free Adobe Reader)

OLRS INFORMATION/PROCEDURES
Repossession title application can be processed on-line
LN-41-09 contained a reminder concerning repossession title applications and stated repossession title applications could not be processed on-line in triVIN’s OLRS.

Subsequently, we received information from the Manager of PennDOT’s OLRP Unit about processing repossession title applications on-line in triVIN’s OLRS with Form MV-217A or MV-217. We were informed repossession title transaction can be processed on-line in triVIN’s OLRS. However, you will not be able to process Option 3 (Mobile Home) on-line with Form MV-217A because sales tax exemption reason code #3 is not available.

With this license bulletin we are including 4 examples of how Form MV-217A should be completed with an example of the completed PA title for the three options. NOTE: There are two examples for Option 2 on the MV-217A (see below).

The examples for the completed MV-217A/PA title are as follows:

1. MV-217A – Option 1 – Title to Lien holder
2. MV-217A – Option 2 – Title to Dealer
3. MV-217A – Option 2 – Title to Individual
4. MV-217A – Option 3 – Mobile Home

We were informed when processing Option 2 – “Title to Individual” in triVIN’s OLRS a registration plate may be issued. Form MV-1 is not required to be submitted with the MV-217A because the Applicant Summary Statement takes the place of the MV-1. We were informed if the vehicle owner wants to transfer a registration plate when processing an on-line repossession deal, the online agent must process the MV-217A as a “title only” and the vehicle owner must wait until they receive their title to transfer the registration plates because an agent must see the proof of ownership to transfer the plate. The other option is to issue the applicant a registration plate.

You can process the on-line title application for a repossession deal with Form MV-217A as a “Title Only” or “Reassign Title/New Reg.” depending on what option is checked in Section D on the MV-217A.

If option 1 (Renunciation) is checked in Section D, the repossessor must apply for the title in its name. Unless sales tax is paid, we do not believe this option will be used to process on-line.

If option 2 (Non-judicial sale or repossession and retention (M.V.S.F.A.) is checked and an individual is applying for a PA title, a plate can be issued when processing the MV-217A on-line. We believe this will be the option used most often with on-line processing of Form MV-217A.

If a dealer is applying for a title to the repossessed vehicle and option 2 is checked on the MV-217A, most likely it would be a “Title only”. Sales tax reason code # 1 is not available in the OLRS for repossessions which means sales tax would be required to be paid by the dealer to have it processed on-line.

If option 3 (mobile home) is checked in Section D on the MV-217A, a plate will not be issued because a mobile home does not get a plate. We do not believe option 3 will be used since sales tax exemption reason code # 3 is not available in triVIN’s OLRS for a mobile home owner.

The items on the reverse side of Form MV-217A that a financial institution or dealer must possess before repossessing a vehicle are not required to be submitted with the Applicant Summary Statement/MV-217A. Instead, the repossessor must sign and date Section F and G on Form MV-217A which indicates they have all the documents required by law to repossess the vehicle at their place of business.

If there is any doubt or you have questions concerning the repossession or completion of the MV-217A/PA title, do not process it on-line. Submit the MV-217A/PA title to PennDOT for processing as you have been doing in the past. Remember, if submitting the MV-217A or MV-217 to PennDOT for processing the procedures are different; a temporary plate cannot be issued or plate transferred if PennDOT processes the MV-217 or MV-217A.

MV-217 – On-Line Processing
We were informed Form MV-217 can also be processed on-line. Unlike the MV-217A, the items listed in Option 1, Option 2, and Option 3 on the reverse side of Form MV-217 are required to be submitted to PennDOT with the Applicant Summary Statement. Form MV-1 is required to be submitted with the MV-217 if PennDOT processes the title transaction, but the MV-1 is not required to be submitted if the MV-217 is processed on-line. Form MV-140 is not required to be submitted with the MV-217 if a plate is issued on-line because the plate number/insurance/signature of applicant will show on the Applicant Summary Statement and takes the place of the MV-140 when a plate is issued by the on-line processor.

If you process Form MV-217 on-line in triVIN’s OLRS be sure all the items required to repossess the vehicle listed on the reverse side of Form MV-217 are present and submitted with the Applicant Summary Statement, etc. If you are unsure the required repossession documents that are presented to you by the applicant are the ones you need, do not process it on-line. Instead, submit the MV-217 to PennDOT with Form MV-1 and the items listed on the reverse side of Form MV-217.

1. Only the front of the PA driver’s license is submitted. We need a photo-copy of the front and back of the ID.
   
   
2. Only half of the back of the ID is submitted because it was cut off when photo-copied.
   
   
3. It appears the address or name on the driver’s license changed, but no documentation is submitted to prove that fact. Please submit a copy of the Update Card that goes with the PA driver’s license. If the customer does not have the Update Card and already changed the address on the DL, a copy from the Internet on PennDOT’s website showing the customer’s name and address is OK to submit with the Applicant Summary Statement. You can get this for the driver by going to the “Change Address on Your DL/Photo ID Card” area on PennDOT’s website. After the driver number, date of birth, and last four digits of the social security number are entered, the driver’s name and address appears on the screen. Print this page and submit it with the copy of the front and back of the driver’s license.

Occasionally we see the front of the photocopied PA driver’s license is too dark, too light, or not clear. The picture of the vehicle owner when photocopied should be clear enough to see the face of the person and to read the information printed on it.

It is sometimes difficult to contact employees at AAA by telephone when we need things for on-line title/registration transactions that were processed in triVIN’s OLRS. We leave messages on voice mail, fax a message to the on-line processor or e-mail a contact person at the office. Please help us by complying with our requests regarding the photocopy of the ID, etc.

Out-of-state MCO’s
When accepting an out-of-state MCO, the “Odometer Disclosure for Retail Sale” section must be completed. A separate odometer disclosure statement that was completed by the out-of-state dealer is not acceptable because it does not comply with the “Truth in Mileage” federal law. Dealers in states other than PA sometimes do not complete odometer section on the back of an MCO. If a customer gives you an MCO for a vehicle that was purchased out-of-state and the odometer section is not complete, do not process the title transaction on-line even if a separate odometer disclosure statement accompanies the MCO. The purchaser must get the out-of-state dealer to complete the “Odometer Disclosure for Retail Sale” section on the MCO.

PA titles with model year 2008 or newer must comply with CARB certification
This is a reminder to be on the lookout for PA titles, model year 2008 or newer for passenger vehicles or light duty trucks with a GVWR of less than 8,500 lbs. If the odometer reading that is written on the back of a PA title is less than 7,500, Form MV-9 must accompany the PA title/Applicant Summary Statement. DEP regulations consider a vehicle for the CARB certification rules to be new until it reaches 7,500 miles. When a vehicle with the model year 2008 or newer reaches 7,500 miles, completing Form MV-9 is never required to submit with a title transaction.

Order of submission for on-line transactions
It is helpful to us when on-line title/registration transactions are kept in the order as they appear on the Transaction Summary Report. Likewise, when checks or money orders are submitted, keep them in the order as they appear on the TSR. Please write the WID on the check or money order and stamp your messenger number on it. Also, if a Transaction Problem Report is completed, please place it under the Applicant Summary Statement for ACH transactions. If it was a check transaction the order of assembly is: Applicant Summary Statement, photocopy of the check, Transaction Problem Report, proof of ownership and supporting documents (ending with the photocopy of proof of ID).