Furnishing bond for certificates.

Checkout our iOS App for a better way to browser and research.

(1) (a) If the applicant for a certificate of title to a motor or off-highway vehicle is unable to provide the director or the authorized agent with a certificate of title duly transferred to the applicant or other evidence of ownership satisfactory to the director as specified in rules established under section 42-6-104, the director or the authorized agent may file a certificate of title for the vehicle if the applicant furnishes the director or the authorized agent with a statement, in a form specified by the director, that contains:

  1. A recital of the facts and circumstances by which the applicant acquired the ownership and possession of the vehicle;

  2. The source of the title to the vehicle; and

  3. Other information as the director may require to determine:

  1. Whether any liens are attached to the motor vehicle;

  2. The date of the liens;

  3. The amount secured by the vehicle;

  4. Where the liens are of public record; and

  5. The right of the applicant to have a certificate of title filed on behalf of the applicant.

  1. The statement specified in paragraph (a) of this subsection (1) must contain or beaccompanied by a written declaration that it is made under penalty of perjury in the second degree, as defined in section 18-8-503, C.R.S., and must accompany the application for the certificate as required in section 42-6-116.

  2. The director or the authorized agent may maintain any evidence submitted to thedirector or the authorized agent in a paper or electronic version.

  3. Upon receipt of an application by the owner of a motor or off-highway vehicle that issubject to a lien or mortgage, the authorized agent shall not issue a certificate of title unless the owner includes a signed original or signed duplicate of the mortgage or copy thereof, certified by the holder of the mortgage or the holder's agent to be a true copy of the signed original mortgage. Upon receiving the mortgage, the authorized agent shall comply with sections 42-6-121 (2), 426-122, and 42-6-123 concerning the lien or mortgage.

  1. If the director or the authorized agent finds that the applicant is the same person towhom a certificate of title for the vehicle has previously been issued or filed and to whom a license was issued for the year during which the application for the certificate of title is made and that a certificate of title should be filed on behalf of the applicant, the director or authorized agent may file the certificate.

  2. (a) Except as provided by paragraph (b) of this subsection (3) or section 42-12-402, the department or an authorized agent shall not file a certificate of title under this section until the applicant furnishes evidence of a savings account, deposit, or certificate of deposit meeting the requirements of section 11-35-101, C.R.S., or a good and sufficient bond with a corporate surety, to the state, in an amount fixed by the director, not less than twice the reasonable value of the vehicle determined as of the time of application. The applicant and the applicant's surety shall hold harmless any person who suffers loss or damage by reason of the filing of a certificate under this section.

(b) (I) If a vehicle is twenty-five years old or older, the applicant has had a certified vehicle identification number inspection performed on the vehicle, and the applicant presents a bill of sale within twenty-four months after the sale with the title application, the applicant need not furnish surety under this subsection (3). To be excepted from the surety requirement, an applicant must submit an affidavit to the department that is sworn to under penalty of perjury and that states that the required documents submitted are true and correct.

(II) An applicant need not furnish surety under this subsection (3) for an off-highway vehicle if the applicant submits an affidavit under penalty of perjury attesting to ownership of the vehicle and if the vehicle:

  1. Was moved to Colorado from a state not issuing certificates of title for off-highwayvehicles;

  2. Is used and held as inventory by a powersports dealer;

  3. Was owned by an agency of the United States or another state or a political subdivision thereof;

  4. Was owned by an agricultural producer and used strictly for agricultural purposes;

  5. Was owned exclusively for the purpose of being operated in an organized competitive or noncompetitive event on publicly or privately owned or leased land; except that this exemption does not apply unless the agency exercising jurisdiction over the land specifically authorizes the organized competitive or noncompetitive event; or

  6. Was used by a dealer, manufacturer, or authorized designee for an off-highway vehicle operator education or safety program.

(4) If any person suffers loss or damage by reason of the filing of the certificate of title as provided in this section, the person has a right of action against the applicant and the surety on the applicant's bond against either of whom the person damaged may proceed independently of the other.

Source: L. 94: Entire title amended with relocations, p. 2455, § 1, effective January 1, 1995. L. 2000: Entire section amended, p. 1660, § 9, effective July 1, 2001. L. 2003: (2) amended and (3) added, p. 1339, § 1, effective April 22. L. 2005: Entire section amended, p. 814, § 13, effective August 8. L. 2009: (3)(b) amended, (SB 09-107), ch. 143, p. 606, § 2, effective August 5. L. 2011: (3) amended, (SB 11-031), ch. 86, p. 248, § 16, effective August 10. L. 2012: Entire section amended, (SB 12-095), ch. 112, p. 389, § 3, effective August 8. L. 2013: IP(1)(a) and (3)(b) amended and (1)(d) added, (SB 13-280), ch. 407, p. 2382, § 12, effective June 5. L. 2018: (3)(b)(I) amended, (HB 18-1299), ch. 297, p. 1814, § 11, effective July 1, 2019.

Editor's note: This section is similar to former § 42-6-113 as it existed prior to 1994, and the former § 42-6-115 was relocated to § 42-6-117.

Cross references: For the legislative declaration in the 2012 act amending this section, see section 1 of chapter 112, Session Laws of Colorado 2012.


Download our app to see the most-to-date content.