§286-52  Procedure when title of vehicletransferred; delivery of certificate mandatory.  (a)  Upon a transfer ofthe title or interest of a legal owner in or to a vehicle registered under thispart, the person whose title or interest is to be transferred and thetransferee shall write their signatures with pen and ink upon the certificateof ownership issued for the vehicle, together with the address of thetransferee in the appropriate space provided upon the certificate.

(b)  Within thirty calendar days thereafter,the transferee shall forward the certificate of ownership so endorsed to thedirector of finance who shall file the same; provided that if the recorded lienholder does not have an office in the State, the applicable period shall besixty days.  Whenever a transferee fails to comply with these provisions, thedirector of finance shall charge a fee of $50, in addition to the fee providedin section 286-51, for a new certificate of ownership.

(c)  Subsection (b), requiring a transferee toforward the certificate of ownership after endorsement to the director offinance, shall not apply to the transferee of a vehicle who was not intendingto and does not drive the vehicle or permit the vehicle to be driven upon thepublic highways, but every such transferee, upon transferring the transferee'sinterest or title to another, shall give notice of the transfer to the directorof finance and endorse the certificate of ownership to the new legal owner andthe certificate of registration to the new owner; provided that if the directorof finance has ascertained as of the date of the application that theregistered owner has not deposited or paid bail with respect to any summons orcitation issued to the registered owner for stopping, standing, or parking inviolation of traffic ordinances within the county, the director may require, asa condition precedent to the transfer, that the registered owner deposit or paybail with respect to all such summons or citations.

(d)  The director of finance, upon receipt ofthe certificate of ownership properly endorsed, shall register the vehicle, andshall issue to the owner and legal owner entitled thereto by reason of thetransfer a new certificate of registration and the certificate of ownership,respectively, in the manner and form hereinabove provided for originalregistration.

(e)  Until the director of finance has issuedthe new certificate of registration and certificate of ownership as insubsection (d) provided, delivery of such vehicle shall be deemed not to havebeen made and title thereto shall be deemed not to have passed, and theintended transfer shall be deemed to be incomplete and not to be valid oreffective for any purpose, notwithstanding any provision of the UniformCommercial Code; provided that a security interest in a motor vehicle shall beperfected as provided in the Uniform Commercial Code, section 490:9-311 andthat the validity, attachment, priority, and enforcement of such securityinterest shall be governed by Article 9 of the Code.

(f)  In the event of the transfer by operationof law of the title or interest of a legal owner in and to a vehicle registeredunder this part, as upon inheritance, devise, or bequest, order in bankruptcy,or insolvency, execution sale, repossession upon default in performance of theterms of a lease or executory sales contract, or otherwise than by thevoluntary act of the person whose title or interest is so transferred, thecertificate of ownership shall be signed upon the spaces provided by thepersonal representative, receiver, trustee, sheriff, or other representative,or successor in interest of the person whose title or interest is sotransferred in lieu of such person.  Every personal representative, receiver,trustee, sheriff, or other representative hereinabove referred to shall filewith the director of finance a notice of any transfer by sale, lease, orotherwise by such person, of any such vehicle, together with evidencesatisfactory to the director of finance of all facts entitling such representativeto make the transfer.  Upon notice given to the director of finance thattransfer by operation of law of the title or interest of a legal owner or aregistered owner has been effected pursuant to any provision of law, thedirector of finance shall send to the legal owner or the registered owner orboth a notice by registered mail of such action and requesting the delivery tothe director of finance of the certificate of ownership or the certificate ofregistration, as the case may be, within ten days after date of mailing of thenotice, and any person who refuses or neglects to deliver the same to thedirector of finance pursuant to the notice shall be guilty of a misdemeanor andshall be punished as provided in section 286-61.

(g)  Nothing in the foregoing subsections shallprevent a legal owner from assigning the title or interest in or to a vehicleregistered under this part to another legal owner at any time without theconsent of and without affecting the interest of the holder of the certificateof registration thereof.  Upon filing with the director of finance of acertificate of ownership endorsed by the legal owner and a transferee of legalownership, the director of finance shall, whether the certificate ofregistration has expired or not, enter the name of the new legal owner upon therecords of the director's office and shall forthwith issue a new certificate ofownership to the new legal owner in the form for original registration.  Uponso doing, the director of finance shall send to the registered owner a noticeby mail of the action.

(h)  Any person who refuses or neglects todeliver a certificate of ownership to a transferee entitled thereto under thispart, shall be punished as provided in section 286-61.

(i)  Every dealer, upon transferring a motorvehicle, whether by sale, lease, or otherwise, shall immediately give notice ofthe transfer to the director of finance upon the official form provided by thedirector of finance.  Every such notice shall contain the date of the transfer,the names and addresses of the transferor and transferee, and such descriptionof the vehicle as may be called for in the official form.

(j)  Every person, other than a dealer, upontransferring a motor vehicle, whether by sale, lease, or otherwise, shall withinten days give notice of the transfer to the director of finance upon theofficial form provided by the director of finance.  Every notice shall containthe date of transfer, the names and addresses of the transferor and transferee,and such description of the vehicle as may be called for in the official form. Any person who violates this subsection shall be fined not more than $100.

(k)  Whenever the registered owner of any motorvehicle or any licensed dealer has given notice to the director of finance of atransfer of the title or interest in the motor vehicle, as provided insubsection (i) or (j), and has delivered the certificate of ownership bearingthe transferor's signature to the transferee as required by subsection (a), thetransferor shall be relieved from any liability, civil or criminal, from thedate the transferor delivers the motor vehicle into the transferee'spossession, which the transferor might otherwise subsequently incur by reasonsolely of being the registered owner of the vehicle.

(l)  A licensed dealer who has forwarded aproperly endorsed certificate of ownership to the director of finance shall berelieved of any civil liability, from the date the transferor delivers themotor vehicle into the transferee's possession, which the transferor mightotherwise subsequently incur by reason solely of being the registered owner ofthe vehicle; provided that a specific written authorization to forward thecertificate has been obtained from the transferee.

(m)  Any person who falsely or fraudulentlygives notice to the director of finance of a transfer of title or interest in amotor vehicle shall be subject to the penalty provided in section 286-61. [L1929, c 197, §8; RL 1935, §2671; am L 1935, c 74, §2; RL 1945, §7342; am L1949, c 188, §1; RL 1955, §160-10; am L 1966, c 18, §4; am L 1967, c 79, §3, c181, §§1, 2, and c 214, §5; HRS §286-52; am L 1968, c 9, §2; am L 1970, c 125,§1; am L 1976, c 200, pt of §1; am L 1978, c 92, §4; am L 1980, c 123, §1 and c162, §1; am L 1987, c 279, §1; am L 1989, c 211, §10; am L 1990, c 281, §11; amL 1993, c 78, §1; am L 1994, c 70, §§1, 2; am L 1995, c 164, §4; am L 1996, c13, §5; am L 2000, c 241, §3; am L 2001, c 12, §1]

 

Attorney General Opinions

 

  The security interest in a motor vehicle required to beregistered and which is not inventory may be perfected only by registration. Att. Gen. Op. 67-21.

 

Case Notes

 

  In event of noncompliance, mortgage creates no lien.  34 H.407.

  The procedures required by statute to effect transfer aremandatory.  34 H. 407.

  Issuance of new certificates is condition precedent to validtransfer.  38 H. 279.

  Subsection (e).  Notwithstanding plain language of section,seller not liable for negligent operation of automobile by buyer merely becausetreasurer had not yet issued new certificate.  53 H. 208, 490 P.2d 899.

  Section was not determinative of ownership for purposes ofresolving coverage disputes under automobile insurance policies.  72 H. 80, 807P.2d 1256.

  Subsection (k).  Seller not liable for buyer's negligentoperation of automobile though seller still registered owner.  6 H. App. 646,736 P.2d 73.

  Cited:  9 H. App. 198, 828 P.2d 1284.