HLS 17RS-999 REENGROSSED
2017 Regular Session
HOUSE BILL NO. 432
BY REPRESENTATIVE SHADOIN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
MTR VEHICLE/REGISTRATION: Imposes certain requirements on transactions executing
the transfer of certificates of title of certain movable property
1 AN ACT
2To amend and reenact R.S. 34:852.6(A) and to enact R.S. 32:702(17) and 705(B)(4), relative
3 to transactions executing the transfer of certificates of title of certain movable
4 property; to provide for definitions; to regulate certain transactions transferring
5 certificates of title of movable property; to impose certain procedural requirements;
6 and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 32:702(17) and 705(B)(4) are hereby enacted to read as follows:
9 §702. Definitions
10 As used in this Chapter:
11 * * *
12 (17) "Authorized officer" means any officer of a federally insured financial
13 institution operating in Louisiana who is designated to witness the endorsement of
14 a seller, on behalf of a federally insured financial institution, for the purpose of
15 executing the transfer of a titled motor vehicle or titled vehicle in accordance with
16 the requirements of this Chapter. A federally insured financial institution may
17 designate one or more officers to serve as authorized officers.
18 * * *
19 §705. Delivery of certificate to purchaser of vehicle
20 * * *
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HB NO. 432
1 B. For purposes of this Section, an "endorsement" means one of the
2 following:
3 * * *
4 (4)(a) The signature of the seller in the presence of an authorized officer, as
5 defined in R.S. 32:702(17), who shall verify the identity of the seller and who shall
6 subscribe his name as a witness thereon, when the seller is transferring ownership to
7 a purchaser who is granting a security interest in the vehicle to the federally insured
8 financial institution that is making a secured loan to the purchaser.
9 (b) The federally insured financial institution shall provide the Department
10 of Public Safety and Corrections, office of motor vehicles, with a separate document
11 identifying the name and job title of the authorized officer for the purpose of
12 verifying that the person signing as a witness is an authorized officer of that
13 particular financial institution. This document or a copy thereof shall be attached to
14 or included with each title presented to the department that is endorsed in the manner
15 described in this Paragraph.
16 Section 2. R.S. 34:852.6(A) is hereby amended and reenacted to read as follows:
17 §852.6. Prohibition of vessel or outboard motor sale, assignment, or transfer without
18 certificate of title or documentation
19 A.(1) No person shall sell, assign, or transfer a vessel or outboard motor
20 titled by the department or documented with the United States Coast Guard without
21 delivering to the new owner or the new owner's designee a certificate of title or a
22 certificate of documentation with an assignment in the new owner's name.
23 (2)(a) Notwithstanding the requirements of Paragraph (1) of this Subsection
24 or any other law to the contrary, if a person sells, assigns, or transfers a vessel or
25 outboard motor titled by the department to a purchaser who obtains a secured loan
26 from a federally insured financial institution that takes a security interest in the
27 vessel or outboard motor, the endorsement or assignment of the certificate of title
28 shall be signed by the seller and witnessed by an authorized officer, as defined in
29 Item (c)(i) of this Paragraph, who shall subscribe his name as a witness thereon.
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HB NO. 432
1 (b) The federally insured financial institution shall provide the department
2 with a separate document identifying the name and job title of the authorized officer
3 for the purpose of verifying that the person signing as a witness is an authorized
4 officer of that particular financial institution.
5 (c)(i) For the purposes of this Section, "authorized officer" shall mean any
6 officer of a federally insured financial institution operating in Louisiana who is
7 designated to witness the endorsement or assignment of a certificate of title of a
8 seller, on behalf of a federally insured financial institution, for the purpose of
9 executing the transfer of either a vessel or an outboard motor.
10 (ii) A federally insured financial institution may designate one or more
11 officers to serve as authorized officers.
12 * * *
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 432 Reengrossed 2017 Regular Session Shadoin
Abstract: Requires that certain transactions transferring the certificate of title of certain
movable property be witnessed by an authorized officer of a federally insured
financial institution.
Present law provides for definitions.
Proposed law defines the term "authorized officer" as any officer of a federally insured
financial institution operating in La. who is designated to witness the endorsement of a
seller, on behalf of a federally insured financial institution for the purpose of transferring a
titled motor vehicle.
Present law enumerates certain circumstances that are deemed "endorsements" for the
purposes of present law regarding the delivery of certificates of title to the purchaser of a
vehicle.
Proposed law adds another circumstance to be deemed an "endorsement" for the purposes
of present law. Proposed law provides that the signature of the seller in the presence of an
authorized officer, who shall verify the identity of the seller and who shall subscribe his
name as a witness, when the seller is transferring ownership to a purchaser who is granting
a security interest in the vehicle to the federally insured financial institution that is making
a secured loan to the purchaser shall be considered an "endorsement" for the purposes of
present law.
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HB NO. 432
Proposed law requires the federally insured financial institution to provide the Department
of Public Safety and Corrections, office of motor vehicles, with a separate document
identifying the name and job title of the authorized officer for the purpose of verifying that
the person signing as a witness is an authorized officer of that particular financial institution.
Proposed law additionally requires this separate document be attached or included with each
title presented for transfer.
Present law prohibits a person from selling, assigning, or transferring a vessel or outboard
motor titled by the Department of Wildlife and Fisheries (DW&F) or documented with the
U. S. Coast Guard without delivering to the new owner or the new owner's designee a
certificate of title or a certificate of documentation with an assignment in the new owner's
name.
Proposed law maintains present law. Proposed law further provides that if a person sells,
assigns, or transfers a vessel or outboard motor titled by DW&F to a purchaser who obtains
a secured loan from a federally insured financial institution that takes a security interest in
the vessel or outboard motor, the endorsement or assignment of the certificate of title shall
be signed by the seller and witnessed by an authorized officer who must subscribe his name
as a witness thereon.
Proposed law requires the federally insured financial institution to provide the DW&F with
a separate document identifying the name and job title of the authorized officer for the
purpose of verifying that the person signing as a witness is an authorized officer of that
particular financial institution.
Proposed law provides that for the purposes of proposed law, "authorized officer" means any
officer of a federally insured financial institution operating in La. who is designated to
witness the endorsement or assignment of a certificate of title of a seller, on behalf of a
federally insured financial institution, for the purpose of executing the transfer of either a
vessel or an outboard motor.
Proposed law provides that a federally insured financial institution may designate one or
more officers to serve as authorized officers.
(Amends R.S. 34:852.6(A); Adds R.S. 32:702(17) and 705(B)(4))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Transportation,
Highways and Public Works to the original bill:
1. Change the term "authorized signer" to "authorized officer" throughout the bill.
2. Add that an endorsement means the signature of the seller in the presence of an
authorized officer who must verify the identity of the seller and who must
subscribe his name as a witness thereon.
3. Add that an endorsement or assignment of a certificate of title must be signed by
the seller and witnessed by an authorized signer who must subscribe his name as
a witness thereon.
The House Floor Amendments to the engrossed bill:
1. Add that the separate document identifying the authorized signer be attached or
included with each title presented for transfer.
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