GENERAL ASSEMBLY OF NORTH CAROLINA
1989 SESSION

CHAPTER 455
HOUSE BILL 699

AN ACT TO AMEND THE MOTOR VEHICLE SALVAGE TITLE LAW.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 20-4.01(33)(d) reads as rewritten:
"(d)	Salvage Motor Vehicle.-Any motor vehicle damaged by collision or other occurrence to the extent that the cost of repairs to the vehicle and rendering the vehicle safe for use on the public streets and highways would exceed seventy-five percent (75%) of its fair retail market value, whether or not the motor vehicle has been declared a total loss by an insurer.   Repairs shall include the cost of parts and labor.  Fair market retail values shall be as found in the NADA Pricing Guide Book or other publications approved by the Commissioner."
Sec. 2.  Section 4 of Chapter 1105 of the 1987 Session Laws reads as rewritten:
"Sec. 4. Sections 1 and 2 of this act are effective upon ratification .  Section 3 of this act shall become effective October 1, 1988, and applies to offenses committed on or after that date."
Sec. 3.  G.S. 20-71.3 reads as rewritten:
"§ 20-71.3.  Titles and registration cards to be branded.
Motor Vehicle certificates of title and registration cards issued pursuant to G.S. 20-57 shall be branded.  As used herein 'branded' means that the title and registration card shall contain a designation that discloses if the vehicle is classified as (a) Flood Vehicle, (b) Non-U.S.A. Vehicle, (c) Reconstructed Vehicle, (d) Salvage Motor Vehicle, or (e) Salvage Rebuilt Vehicle or other classification authorized by law.  Any motor vehicle damaged by collision or other occurrence which is to be retitled in this State shall be subject to preliminary and final inspections by the Enforcement Section of the Division, and the Division shall refuse to issue a title to a vehicle which has not undergone a preliminary inspection.  Any motor vehicle which has been branded in another state shall be branded with the nearest applicable brand specified in this section, except that no junk vehicle or vehicle that has been branded junk in another state shall be titled or registered.  A motor vehicle titled in another state and damaged by collision or other occurrence may be repaired and an unbranded title issued in North Carolina only if the cost of repairs, including parts and labor, does not exceed seventy-five percent (75%) of its fair market retail value and satisfactory evidence is given to the Division that the vehicle would be eligible for the issuance of an unbranded title in the state in which it is titled.  The Commissioner shall prepare necessary forms and may adopt regulations required to carry out the provisions of this Part 3A.  The title shall reflect the branding until surrendered to or cancelled by the Commissioner."
Sec. 4.  G.S. 20-71.4(a) reads as rewritten:
"(a)	It shall be unlawful and constitute a misdemeanor for any person who knows or reasonably should know that a motor vehicle has been involved in a collision or other occurrence to the extent that the cost of repairing that vehicle exceeds twenty-five percent (25%) of its fair market retail value to fail to disclose that fact in writing to the transferee prior to transfer of the vehicle.  The Commissioner may prepare forms to carry out the provisions of this section."
Sec. 5.  G.S. 20-109.1(a) reads as rewritten:
"(a)	A vehicle shall be deemed to be a salvage vehicle:
(1)	When an insurance company has paid a claim on a vehicle damaged by collision or other occurrence to the extent that the claim paid exceeds seventy-five percent (75%) of the fair market retail value as found in the NADA Pricing Guide Book or other publications approved by the Commissioner, or
(2)	When an insurance company has acquired title to 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 salvage vehicle under the provisions of G.S. 20-4.01(33)(d).
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 10 days after payment of a claim forward to the Division 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 Division; and such forms shall be mailed by the Division 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 Division, and the application shall be accompanied by such supporting information as the Division may require."
Sec. 6.  This act shall become effective June 30, 1989.
In the General Assembly read three times and ratified this the 26th day of June, 1989.