O.C.G.A.

O.C.G.A. § 40-3-28 (2019)

Registration of vehicle where commissioner not satisfied as to ownership of vehicle; bond

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)

Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.

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If the commissioner or the commissioner’s duly authorized county tag agent is not satisfied as to the ownership of the vehicle or that there are no undisclosed security interests in it, the commissioner or authorized county tag agent may register the vehicle, but shall either: (1) withhold issuance of a certificate of title until the applicant presents documents reasonably sufficient to satisfy the commissioner or authorized county tag agent as to the applicant’s ownership of the vehicle and that there are no undisclosed security interests in it; or (2) as a condition of issuing a certificate of title, require the applicant to file with the commissioner or authorized county tag agent a bond in the form prescribed by the commissioner and executed by the applicant and by a bonding, surety, or insurance company licensed to do business in Georgia. The bond shall be in an amount equal to the value of the vehicle as determined by the commissioner or authorized county tag agent and payable to the commissioner for the benefit of any prior owner, lienholder, or security interest holder, and any subsequent purchaser of the vehicle or person acquiring any security interest or lien on it, and their respective successors in interest, against any expense, loss, or damage, by reason of the issuance of the certificate of title of the vehicle or on account of any defect in or undisclosed security interest upon the right, title, and interest of the applicant in and to the vehicle. The commissioner shall have a right of action to recover on the bond for any breach of its conditions, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. The bond shall expire at the end of four years unless the commissioner or authorized county tag agent has been notified of a breach of a condition of the bond.

History

Ga. L. 1967, p. 450, § 1; Ga. L. 1973, p. 712, § 1; Ga. L. 1976, p. 319, § 1; Ga. L.

1990, p. 2048, § 3; Ga. L. 1997, p. 739, § 12; Ga. L. 2002, p. 838, § 3.

Annotations

JUDICIAL DECISIONS Effect on UCC warranties. - Issuance of certificates of title pursuant to O.C.G.A. § 40-3-28 does not, as a matter of law, negate the existence of express or implied warranties of title which the

seller gives the purchaser in the course of their dealings. Hudson v. Gaines, 199 Ga. App. 70, 403 S.E.2d 852, 1991 Ga. App. LEXIS 378 (1991).

RESEARCH REFERENCES Am. Jur. 2d. 7A Am. Jur. 2d, Automobiles and Highway Traffic, §§ 30, 31, 40, 45, 161 et seq. C.J.S. 60 C.J.S., Motor Vehicles, §§ 96 et seq., 273, 274, 276.

U.L.A. Uniform Motor Vehicle Certificate of Title and Anti-Theft Act (U.L.A.) § 11.

Notes of Decisions

Cited in 3 cases, 1990–1998 · leading case: Hudson v. Gaines, 403 S.E.2d 852 (Ga. Ct. App. 1991).

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Hudson v. Gaines, 403 S.E.2d 852 (Ga. Ct. App. 1991). · cites it 12× “Under the provisions of OCGA § 40-3-28, Hudson obtained motor vehicle certificates of title under surety bonds, which were then issued to Gaines.”

Perimeter Ford, Inc. v. Edwards, 399 S.E.2d 520 (Ga. Ct. App. 1990). · cites it 2× “When they failed to receive these items, the Edwardses authorized FNB to obtain a title and tag for them, which FNB did by obtaining a title bond pursuant to the procedure set forth in OCGA § 40-3-28. Kafka testified that during his four years of employment with United, United…”

In re Chappell, 224 B.R. 507 (Bankr. M.D. Ga. 1998). · cites it 2× “No certificate of title authorized to be issued under this subparagraph shall be issued under Code Section 40-3-28. (C)(i) A security interest in or lien against a vehicle which is subject to the [15 or more model years old exclusion] and which is perfected on or before the date…”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.