Salvage vehicles -- Certificate of title

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    (a)    (1)    An application for a certificate of title of a vehicle for which a salvage certificate has been issued shall be made by the owner of the vehicle on a form that the Administration requires.

        (2)    An application under paragraph (1) of this subsection shall be accompanied by:

            (i)    Except as provided in subsection (c)(3) of this section, the salvage certificate for the vehicle;

            (ii)    A certificate of inspection issued by a county police department or the Department of State Police; and

            (iii)    A certificate of inspection as required under Title 23 of this article.

        (3)    (i)    The Administration may establish a fee for an inspection under paragraph (2)(ii) of this subsection.

            (ii)    1.    The fees established under this paragraph shall be collected by the Administration or the Automotive Safety Enforcement Division of the Department of State Police.

                2.    The fees collected under this subparagraph shall be paid to the Automotive Safety Enforcement Division of the Department of State Police for the purpose of recovering the cost of administering the salvage inspection program and may not be credited to the Gasoline and Motor Vehicle Revenue Account for distribution under § 8–403 or § 8–404 of this article.

    (b)    (1)    The certificate of title issued by the Administration shall be:

            (i)    Issued in the name of the applicant; and

            (ii)    In a form as provided in this subsection.

        (2)    (i)    The Administration shall issue a certificate of title that contains a conspicuous notation that the vehicle is “rebuilt salvage” if the salvage certificate accompanying the application bears a notation under § 13–506(c)(2)(ii)1 of this subtitle.

            (ii)    The Administration may not issue a certificate of title for a vehicle if the salvage certificate for the vehicle bears a notation under §13–506(c)(2)(ii)2 of this subtitle.

        (3)    The Administration shall issue a certificate of title that contains a conspicuous notation that the vehicle is “Flood Damaged” if the salvage certificate accompanying the application bears a notation under § 13–506(c)(2)(ii)4 of this subtitle.

        (4)    The Administration shall issue a certificate of title that contains a conspicuous notation that the vehicle is “X–Salvage” if the salvage certificate accompanying the application bears a notation under § 13–506(c)(2)(ii)5 of this subtitle or is issued under § 13–506(d) of this subtitle.

    (c)    (1)    When an insurance company makes a claim settlement on a vehicle that has been stolen, the company shall apply for a salvage certificate as provided in § 13–506(c) of this subtitle.

        (2)    On receipt of an application under this subsection, the Administration:

            (i)    Shall make the appropriate notation in its records; and

            (ii)    May not issue the salvage certificate until the vehicle is recovered.

        (3)    When a vehicle that has been stolen is recovered, the Administration shall:

            (i)    Issue a salvage certificate for the vehicle if the insurance company submits a certification under § 13–506(c)(2)(ii)1, 2, 4, or 5 of this subtitle; or

            (ii)    Issue a certificate of title in the name of the insurance company in lieu of a salvage certificate if the insurance company states that the vehicle has sustained damage, except for flood damage, that costs 75% or less than the fair market value of the vehicle to repair.

        (4)    The provisions of subsection (b) of this section apply to a certificate of title issued under this subsection.

        (5)    A vehicle for which a certificate of title was issued under paragraph (3)(ii) of this subsection is exempt from the vehicle excise tax as provided in § 13–810(a)(9) of this title.

    (d)    If the Administration receives an application for a certificate of title for a vehicle accompanied by an ownership document issued by another state containing a notation under the laws of the issuing state that the vehicle is in a condition that is substantially similar to a vehicle that is rebuilt salvage under Maryland law, the certificate of title issued by the Administration shall contain a similar notation.

    (e)    The Administration may adopt regulations to implement this section.


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