§286-42  County finance director's duties. (a)  The county director of finance shall examine and to the best of thedirector's ability determine the genuineness and regularity of everyregistration and transfer of registration of a vehicle as in this partprovided, in order that every certificate issued for a vehicle shall containtrue statements of the ownership thereof, and to prevent the registration of avehicle by any person not entitled thereto, and the director of finance mayrequire any applicant to furnish such information, in addition to thatcontained in the application, as may be necessary to satisfy the director offinance of the truth and regularity of the application.  The director offinance may accept any county certificate of title issued for a vehicle asprima facie evidence of ownership for registration and transfer ofregistration.  The director may issue vehicle identification numbers forreconstructed vehicles, special interest vehicles, or motorcycles, which do nothave vehicle identification numbers if the director determines that therequirements of this section have been met.

The county director of finance may register amotorcycle with an after market frame, using the vehicle identification numberof the frame as issued by the incomplete vehicle manufacturer of the frame.  Abill of sale and Manufacturers Statement of Origin for the frame, engine, andtransmission must be presented and retained as a part of the permanent countyregistration records.  If a Manufacturers Statement of Origin is not availablefor the engine and transmission due to the use of a used or reconstructedengine, transmission, or both, then a bill of sale or other proof of ownership,satisfactory to the director of finance must be presented.

(b)  For the purpose of registering standardmakes and body types of new passenger motor vehicles the director of financemay accept the certificate of any licensed motor vehicle dealer certifying tothe weight and identification of such vehicle.  The director of finance of anycounty may accept the certificate of the director of finance of any othercounty as to weight and identification of any such vehicle.

(c)  The director of finance may enter into acontract with new car dealerships and motor vehicle rental companies for theregistration of new motor vehicles consistent with any statute, ordinance, orprovision of any applicable collective bargaining agreement.  The director offinance may adopt rules pursuant to chapter 91 as may be necessary for theapplication, bonding, and procedural requirements of such contractor.

(d)  In the event the director of finance isnot satisfied as to the ownership of any vehicle sought to be registered,unless the applicant presents satisfactory evidence to the director of financeof the applicant's ownership of the vehicle and as to any liens thereon, thedirector of finance may accept from the applicant a bond in such form as may bedetermined by the director of finance in an amount equal to the retail value ofthe vehicle.  The bond and the deposit thereof shall be conditioned to protectthe director of finance and any subsequent purchaser of the vehicle or personacquiring any lien thereon or the successor in interest of any such personagainst any loss or damage on account of any defect in or undisclosedencumbrance upon the right, title, and interest of the applicant in and to thevehicle.  Any such interested person shall have a right of action to recover onany such bond for any breach of the conditions for which the same was deposited. The aggregate liability of the surety to all such persons shall in no eventexceed the amount of the bond and interest thereon, plus a reasonableattorney's fee to be allowed by the court incurred to procure the recoveryunder the bond.  The bond shall (unless suit has been instituted thereon) bereturned and surrendered at the end of three years.

(e)  The county finance director, upon beingnotified by the designated county department that a vehicle is a specialinterest vehicle or that a vehicle has been inspected and approved as areconstructed vehicle, shall cause that fact to be shown upon the registrationand title certificates for that vehicle. [L 1929, c 197, §2; RL 1935, §2666; RL1945, §7337; am L 1949, c 162, §1; am L 1953, c 69, §2; RL 1955, §160-3; am LSp 1959 2d, c 1, §16; HRS §286-42; am L 1977, c 77, §3; am L 1984, c 276, §6;gen ch 1985; am L 1992, c 135, §1; am L 1995, c 164, §2; am L 1996, c 108, §1;am L 1997, c 246, §6; am L 2002, c 255, §3]