§286-48  Certificates of ownership ofsalvaged motor vehicles.  (a)  Whenever a motor vehicle subject toregistration under this part is sold as salvage or conveyed to an insurancecompany, in the ordinary course of business or as the result of a total lossinsurance settlement where the insurance company receives the certificates ofregistration and ownership, the purchaser or, if an insurance company itsauthorized agent, shall within ten days from the purchase, or the settlement ofthe insurance loss, forward the motor vehicle's endorsed certificate ofownership or other evidence of title, certificate of registration, licenseplates, and an application for a salvage certificate as provided for in section286-44.5, to the director of finance.  If the certificate of registration orone or both license plates are lost, an affidavit, duly notarized and signed bythe party responsible for the compliance of this section stating that the partyhas no knowledge of the location of the certificate of registration or thelicense plates, shall be filed with the director of finance of the countyhaving jurisdiction over the vehicle.  In any event the certificate ofownership or other evidence of title shall be forwarded to the director offinance.

(b)  Upon receipt of the certificate ofownership, certificate of registration, license plates, and application for asalvage certificate, the director of finance shall issue a salvage certificatein the name of the purchaser or insurance company.

(c)  Upon resale of the salvage vehicle, theseller or, if the seller is an insurance company, its authorized agent shalltransfer the salvage certificate and issue a bill of sale to the purchaserwhich shall be on a form prescribed by the director of finance.  The sellershall notify the purchaser, in writing, of the requirements of this chapterregarding the recertification of salvage vehicles.  The seller shall sell thesalvage vehicle only to a person licensed pursuant to chapter 437B, sections289-4, or 445-232, or any person who executes an affidavit which states whetheror not the salvage vehicle would be used to construct a rebuilt vehicle asdefined in section 286-2 and that if the salvage vehicle is to be rebuilt, thepurchaser will register the rebuilt vehicle as required by this chapter.

(d)  In the event the salvage vehicle isrebuilt so as to be capable of again operating on the highways of this State,the motor vehicle shall not be licensed for such operation, nor shall theownership thereof be transferred until there is submitted to the director offinance:

(1)  The prescribed bill of sale;

(2)  An appropriate application for registration ofthe rebuilt or restored motor vehicle along with the salvage certificate and acertificate of inspection signed by the registered or certified motor vehiclerepair dealer who is bonded as required by section 437B-26, and who rebuilt thevehicle, attesting that the original recognized vehicle manufacturer'sestablished repair procedures or specifications and allowable tolerances for theparticular model and year were utilized and adhered to; and

(3)  Any other document and fee required by thedirector of finance.

The counties may, by ordinance, establish the fee tobe charged for the inspection of rebuilt motor vehicles.

(e)  Whenever a certificate of registration andcertificate of ownership is issued for a motor vehicle with respect to which asalvage certificate has been previously issued, the new certificates shallconform to the requirements of section 286-47 and:

(1)  Bear the words "Rebuilt Vehicle"; and

(2)  Appear in such a manner as to distinguish themfrom the certificate of registration and certificate of ownership for motorvehicles other than rebuilt or restored motor vehicles.

(f)  In the event a total loss insurance settlementbetween an insurance company and its insured or a claimant for property damagecaused by its insured results in the retention of the salvage vehicle by theinsured or claimant, as the case may be, then in such event, the insurancecompany or its authorized agent shall notify, within ten days from the date ofsettlement, the director of finance of such retention by its insured orclaimant, as the case may be, and shall notify its insured, or claimant as thecase may be, in writing, of the requirements of this chapter regarding therecertification of salvage vehicles.  The notification shall be on a formprescribed by the director of finance. [L 1967, c 178, §2; HRS §286-48; am L1969, c 194, §1; am L 1984, c 276, §7; gen ch 1985; am L 1986, c 74, §2; am L1987, c 51, §1; am L 1988, c 315, §1]