27 CAR pt. 14 | 27 CAR Part 14 — Salvage, Rebuilt, and Parts-only Vehicles

Chapter I

Subchapter B

Subpart 1

27 CAR § 14-101 Definitions {#sec-27-car-14-101 omnilex-key=us-ar-regs-official--title-27-part-14--27 CAR § 14-101}

27 CAR § 14-101. Definitions.

For purposes of this part, unless otherwise required by their context, the following definitions apply:

(1) "Affidavit of Reconstruction" means a form, prescribed by the Secretary of the Department of Finance and Administration, which shall be:

(A) Completed by a repairer or rebuilder upon completion of the rebuilding or reconstruction of a damaged motor vehicle; and

(B) Surrendered to the Secretary of the Department of Finance and Administration by the owner of the rebuilt or reconstructed motor vehicle when making application for registration and issuance of a rebuilt title as defined herein;

(2) "Commissioner" means the Secretary of the Department of Finance and Administration acting in his or her capacity as Commissioner of Motor Vehicles in this state;

(3)(A) "Dealer" means any person or business who:

(i) Sells or offers for sale a motor vehicle after selling or offering for sale five (5) or more motor vehicles in the previous twelve (12) months; or

(ii) Who is a new or used motor vehicle dealer licensed by or with the State of Arkansas.

(B) Persons or businesses that operate as salvage vehicle pools or salvage vehicle auctions are not dealers for purposes of this part when selling vehicle parts to a dealer;

(4) "Declaration of Damage" means a form, prescribed by the Secretary of the Department of Finance and Administration, which shall be completed by the owner or insurer of a salvage vehicle, as defined herein, which is submitted to the Secretary of the Department of Finance and Administration:

(A) By the owner when making application for registration and issuance of a salvage title; or

(B) For an insurer not taking title to the salvage vehicle, within thirty (30) days of indemnifying the owner for loss;

(5)(A) "Motor vehicle" means every self-propelled vehicle, except motorcycles, motor-driven cycles, and trucks with an unladen weight of ten thousand pounds (10,000 lbs.) or more, in, upon, or by which any person or property is or may be transported upon a street or highway.

(B)(i) "Motor vehicle" does not include:

(a) Motorcycles;

(b) Motor-driven cycles;

(d) Any motor vehicle that has been damaged to the extent that it is considered junk under the provisions of Arkansas Code § 27-14-913 or for which an Arkansas Intent to Dismantle form has been submitted or an out-of-state junking certificate has been issued; and

(e) Any motor vehicle that is more than seven (7) model years old prior to the year of occurrence.

(ii) Subtracting eight (8) from the current calendar year will determine the latest model year excluded;

(6) "Occurrence" means the event which caused the motor vehicle to become damaged and includes, without limitation:

(A) Collision;

(B) Theft;

(D) Storm; and

(E) Flood;

(7) "Office of Motor Vehicle" or "office" means the Office of Motor Vehicle of the Revenue Division of the Department of Finance and Administration;

(8) "Owner" means an individual, insurance company, or other entity with legal title to the motor vehicle;

(9) "Parts-only title" means an Arkansas certificate of title issued to the owner of a vehicle that has no resale value except as a source for parts or scrap that bears the notations "PARTS ONLY" and "Not for Registration";

(10) "Rebuilt or reconstructed motor vehicle" means a motor vehicle for which a salvage, damaged, water-damaged, reconstructed, rebuilt, or other similar certificate of title has been previously issued and the motor vehicle has been repaired to the extent that it can be licensed for use on the public streets and highways of this state;

(11) "Rebuilt title" means an Arkansas certificate of title issued to the owner of a rebuilt or reconstructed motor vehicle, as defined herein, that bears the notation "REBUILT" printed in the remarks section on the face of the title;

(12) "Repairer” or “rebuilder" means any person, firm, or entity that engages in the repairing, rebuilding, or reconstructing of any damaged motor vehicle, as defined in this part, whether or not the activity is for profit;

(13) "Salvage title" means an Arkansas certificate of title issued to the owner of a salvage vehicle, as defined herein, that bears the notation "SALVAGE" printed in the remarks section on the face of the title;

(14) "Salvage vehicle" means a motor vehicle which:

(A) Is water-damaged as defined in this part; or

(B) Sustains any other damage in an amount equal to or exceeding seventy percent (70%) of its average retail value, as listed in the most current issue of any pricing guide approved by the Secretary of the Department of Finance and Administration for use in determining the percentage of the damage; and

(15) "Water-damaged" means damage to a motor vehicle caused by submerging or partially submerging the vehicle in water to the extent that the vehicle was submerged or partially submerged at any water level above the dashboard of the vehicle, regardless of the actual dollar amount of the damage.

27 CAR § 14-102 Salvage title application process {#sec-27-car-14-102 omnilex-key=us-ar-regs-official--title-27-part-14--27 CAR § 14-102}

27 CAR § 14-102. Salvage title application process.

(a) Any owner of a salvage vehicle, including insurers who acquire ownership of the vehicle through indemnification on an insurance policy, shall, within thirty (30) days after the date of occurrence, surrender to the Secretary of the Department of Finance and Administration the existing certificate of title along with:

(1) A completed Declaration of Damage form prescribed by the secretary and incorporated herein which:

(A) Describes the damage; and

(B) Reflects the extent of the damage to the motor vehicle;

(2) An application for registration and issuance of a salvage vehicle title;

(3) Any additional documentation required by the secretary to comply with specific statutory requirements for registration and issuance of a salvage title; and

(4) Payment of all requisite fees and taxes for the registration and issuance of a salvage title.

(b) Effective January 1, 2008, any person other than an insurer who acquires ownership of a salvage vehicle, as defined in this part, after the time it becomes a salvage vehicle but prior to the issuance of a salvage title, may either:

(1) Apply for a salvage title by surrendering the certificate of title, along with all accompanying documents and fees referenced herein, within thirty (30) days following the date of acquisition of the certificate of title for issuance of a salvage title; or

(2) Apply for a parts-only title, if the salvage vehicle has no resale value other than as a source for parts or scrap, by surrendering the certificate of title, along with all accompanying documents and fees referenced herein, within thirty (30) days following the date of acquisition of the certificate of title for issuance of a salvage title.

27 CAR § 14-103 Issuance of salvage titles and title notation {#sec-27-car-14-103 omnilex-key=us-ar-regs-official--title-27-part-14--27 CAR § 14-103}

27 CAR § 14-103. Issuance of salvage titles and title notation.

(a) Owner and insurer application. Upon receipt of the certificate of title and accompanying documents and fees referenced in 27 CAR § 14-102, the Secretary of the Department of Finance and Administration shall issue to the owner of a salvage vehicle, including insurers who take ownership through indemnification, a new certificate of title bearing the notation "SALVAGE" in the remarks section on the face of the title.

(b) Insurer notification.

(1) If a motor vehicle becomes a salvage vehicle and an insurer indemnifies under the insurance policy, but the insurer does not take title to the salvage vehicle, the insurer shall notify the Office of Motor Vehicle that the motor vehicle is a salvage vehicle by submitting a completed Insurer Notification and Declaration of Damage form which is prescribed by the secretary and incorporated into this part.

(2) An insurer's total loss report that lists the damage sustained by the vehicle may be submitted to the office in lieu of completing Section 5 of the completed Insurer Notification and Declaration of Damage form that requires a description of damage.

(3) Upon receipt of the completed Insurer Notification and Declaration of Damage form and the insurer’s total loss report, if applicable, the secretary shall attach a note or stamp identifying the vehicle as a salvage vehicle to any:

(A) Copy of a title issued by the office; or

(B) Reissued or changed title.

(4) The note or stamp shall remain in place until:

(A) The owner of the vehicle surrenders the certificate of title to the salvage vehicle; and

(B) A salvage vehicle title is issued by the secretary.

(c) In the event that a motor vehicle is rebuilt or reconstructed after the issuance of a salvage title, a rebuilt title may later be substituted for the salvage title if the owner complies with the provisions of this part pertaining to the registration and titling of rebuilt or reconstructed vehicles.

27 CAR § 14-104 Issuance of parts-only titles and title notation {#sec-27-car-14-104 omnilex-key=us-ar-regs-official--title-27-part-14--27 CAR § 14-104}

27 CAR § 14-104. Issuance of parts-only titles and title notation.

(a) Any motor vehicle that has been damaged to the extent that it is considered junk, nonrepairable, or any other similar designation under the provisions of Arkansas Code § 27-14-913 and for which an Arkansas Notice of Intent to Dismantle a Motor Vehicle form, prescribed by the Secretary of the Department of Finance and Administration and incorporated into this part, has been submitted, or for which a junking certificate has been issued by another state, shall not be registered in the State of Arkansas.

(b) Effective January 1, 2008, an owner of a vehicle considered junk, nonrepairable, or any other similar designation may obtain a new certificate of title bearing the notations "PARTS ONLY" and "Not for Registration" by completing and submitting a Request for Parts Only Title form, to be prescribed by the secretary, along with all requisite fees due for issuance of the parts-only title along with any additional documentation that may be necessary to comply with the statutory requirements for the issuance of a parts-only title.

27 CAR § 14-105 Issuance of rebuilt titles and title notation {#sec-27-car-14-105 omnilex-key=us-ar-regs-official--title-27-part-14--27 CAR § 14-105}

27 CAR § 14-105. Issuance of rebuilt titles and title notation.

(a)(1) When any motor vehicle for which a salvage title has been issued (or for which a similarly branded or designated title has been issued by another state) is rebuilt or reconstructed, the repairer or rebuilder shall complete and deliver to the owner a signed Affidavit of Reconstruction for a Salvage Vehicle form which is prescribed by the Secretary of the Department of Finance and Administration and incorporated into this part that:

(A) Fully discloses the repairs made to the vehicle; and

(B) Lists all parts and components that were repaired or replaced.

(2) The owner or repairer or rebuilder, if that person is the owner, shall acknowledge receipt of the Affidavit of Reconstruction for a Salvage Vehicle form by signing it in the space provided for the owner's signature.

(b) The owner or repairer or rebuilder of a salvage vehicle, if that person is the owner, shall, within ten (10) working days, make application to receive a new certificate of title bearing the notation "REBUILT" in the remarks section on the face of the title by surrendering the existing salvage title to the repaired or reconstructed motor vehicle accompanied by:

(1) The completed Affidavit of Reconstruction for a Salvage Vehicle form;

(2) An application for registration and issuance of a certificate of title to the vehicle signed by the vehicle owner;

(3) Any additional documentation otherwise necessary to comply with specific statutory requirements for registration and issuance of a certificate of title; and

(4) Payment of all requisite fees and taxes.

27 CAR § 14-106 Notation carried forward {#sec-27-car-14-106 omnilex-key=us-ar-regs-official--title-27-part-14--27 CAR § 14-106}

27 CAR § 14-106. Notation carried forward.

The notation of "Salvage", "Rebuilt", "Parts Only", or any other similar designation issued by another state shall be:

(1) Carried forward; and

(2) Printed on the face of all subsequent Arkansas titles issued for the motor vehicle.

27 CAR § 14-107 Taxes {#sec-27-car-14-107 omnilex-key=us-ar-regs-official--title-27-part-14--27 CAR § 14-107}

27 CAR § 14-107. Taxes.

(a) Pursuant to the provisions of Arkansas Code § 27-14-2306, persons licensed by the State of Arkansas as motor vehicle dealers shall not be required to pay gross receipts taxes or compensating use taxes on any motor vehicle they are required to register and title.

(b) Pursuant to the provisions of Arkansas Code §§ 26-52-510 and 27-14-903, persons other than licensed motor vehicle dealers shall pay sales or compensating use tax at registration if the total consideration paid for the motor vehicle is more than the amount set forth in Arkansas Code § 26-52-510(b)(1)(B).

27 CAR § 14-108 Special provisions for insurance companies {#sec-27-car-14-108 omnilex-key=us-ar-regs-official--title-27-part-14--27 CAR § 14-108}

27 CAR § 14-108. Special provisions for insurance companies.

(a) Transfer of possession of motor vehicles. Any insurance company licensed to do business in the State of Arkansas that obtains possession of a motor vehicle as the result of a settlement of an insurance claim, and the motor vehicle has not sustained sufficient damage to require the issuance of a salvage title or is excluded from the definition of motor vehicle by virtue of its age:

(1) May dispose of the motor vehicle by reassigning the existing certificate of title assigned to the insurance company by the insured owner; and

(2) Shall not be required to apply for registration and issuance of a title in the name of the insurance company.

(b) Transfer of possession of exempt vehicles. Any insurance company licensed to do business in the State of Arkansas that obtains possession of exempt motorcycles, motor-driven cycles, and trucks with an unladen weight of ten thousand pounds (10,000 lbs.) or more as the result of a settlement of an insurance claim, and the vehicle is excluded from the definition of motor vehicle:

(1) May dispose of the vehicle by reassigning the existing certificate of title assigned to the insurance company by the insured owner; and

(2) Shall not be required to apply for registration and issuance of a title in the name of the insurance company.

(c) Insurers having the responsibility under this part to surrender the certificate of title on a salvage vehicle for which it has taken title or to notify the Secretary of the Department of Finance and Administration that a motor vehicle is a salvage, rebuilt, or parts-only vehicle may delegate the responsibility of surrendering the certificate of title or of notification to:

(1) A servicing organization; or

(2) Any person or entity purchasing the vehicle from the insurer.

(d) Insurers shall remain responsible under Arkansas law if the servicing organization or purchaser fails to:

(1) Properly surrender the title; or

(2) Notify the secretary.

27 CAR § 14-109 Enforcement {#sec-27-car-14-109 omnilex-key=us-ar-regs-official--title-27-part-14--27 CAR § 14-109}

27 CAR § 14-109. Enforcement.

Pursuant to the provisions of Arkansas Code §§ 27-14-406, 27-14-701, and 27-14-719, failure to abide by the requirements of Arkansas Code § 27-14-2301 et seq., and this part, shall entitle the Secretary of the Department of Finance and Administration to:

(1) Cancel the existing title to the motor vehicle for cause; and

(2) Take possession of any certificate of title, registration certificate, permit, license, or registration plate issued by it for the motor vehicle.

27 CAR Part 14 — Salvage, Rebuilt, and Parts-only Vehicles