Repossessed motor vehicles to be sold without title
in the name of the financial institution.
ENTITLED, An Act to
allow certain repossessed motor vehicles to be sold without title in the
name of the entity selling these motor vehicles.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
be amended to read as follows:
Any auction agency operating under the provisions of this chapter may accept for
sale at its option vehicles which are owned by vehicle dealers regularly licensed in either this or
some other state, or by the following entities if the vehicle is owned and titled by the entity and
acquired incident to its regular business:
Any regulated lender as defined in § 54-3-14 or any financing institution licensed
pursuant to chapter 54-4;
Any financial institution chartered or licensed in any other jurisdiction
. However, such
entity is not required to have a title in its name if the entity provides a title in the name
of the customer, a damage disclosure statement as required pursuant to
documentation as required by the department to substantiate a repossession transaction
Any insurance company authorized to do business in either this state or some other
An auction agency may also accept from any manufacturer any vehicle that is owned by the
manufacturer and that has a manufacturer's certificate of origin or a valid title. Any vehicle with
a manufacturer's certificate of origin sold for a manufacturer may only be offered to the
manufacturer's franchised dealers with the same line vehicle make.
Any vehicle dealer, regularly licensed by this or some other state, may purchase any vehicle
from an auction agency, except as otherwise prohibited by this section. Any auction agency that
accepts for sale any vehicle not authorized by this section is guilty of a Class 1 misdemeanor.
Signed February 20, 2007