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Senate Engrossed House Bill
failure to return vehicle; repeal. |
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(now: failure to return vehicle)
State of Arizona House of Representatives Fifty-sixth Legislature First Regular Session 2023
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HOUSE BILL 2484 |
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An Act
repealing section 13-1813, Arizona Revised Statutes; amending title 28, chapter 7, article 4, Arizona Revised Statutes, by adding section 28-2138; relating to motor vehicles.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Repeal
Section 13-1813, Arizona Revised Statutes, is repealed.
Sec. 2. Title 28, chapter 7, article 4, Arizona Revised Statutes, is amended by adding section 28-2138, to read:
28-2138. Return of a motor vehicle that is subject to a security interest; suspended registration and license plate
A. A person must return a motor vehicle that is subject to a security interest if all of the following apply:
1. The person fails to make a payment on the lien for more than ninety days.
2. The secured creditor notifies the owner in writing, by certified mail return receipt requested, that the owner is ninety days late in making a payment and is in default. The notice shall include the following:
(a) A statement stating:
You are now in default on loan agreement #____________. If you fail to return the _____________________ (year of vehicle, make, model) within thirty days, the motor vehicle's registration and assigned license plate will be suspended.
(b) The business address and hours of operation for return of the motor vehicle.
(c) The maximum penalties for failing to return a motor vehicle that is subject to a security interest.
3. The owner fails to cure the default within thirty days.
4. With the intent to hinder or prevent the enforcement of the secured creditor's security interest, the owner knowingly fails to do either of the following:
(a) Return the motor vehicle to the secured creditor.
(b) Allow the secured creditor to take possession of the motor vehicle.
B. The original contract creating the security interest in the motor vehicle shall contain the following information:
1. A statement that the person must return a motor vehicle that is subject to a security interest within thirty days after receiving notice of default.
2. A statement that notice of default will be mailed to the address on the loan agreement and that it is the responsibility of the owner to keep the listed address current.
3. The maximum penalty for failing to return a motor vehicle that is subject to a security interest.
C. Subsection A of this section does not apply if any of the following conditions exists:
1. The owner was physically incapacitated and unable to request or obtain permission of the secured creditor to retain the motor vehicle.
2. The motor vehicle itself was in a condition, through no intentional fault of the owner, that it could not be returned to the secured creditor within the specified time and the owner has notified the secured creditor of the condition of the motor vehicle.
3. The owner has a security interest pursuant to section 47-2711, subsection C.
D. If a law enforcement agency seizes the motor vehicle, the secured creditor shall be responsible for all towing, storage and related fees or charges.
E. If a person does not return a motor vehicle pursuant to this section, the secured creditor may file an affidavit with the department stating that the person has not returned a motor vehicle that is subject to a security interest pursuant to this section. On receipt of the affidavit, the department shall immediately suspend the registration of, and any license plate assigned to, the motor vehicle. The department may not transfer the motor vehicle's suspended registration or license plate or reregister the motor vehicle until the secured creditor notifies the department that the motor vehicle is recovered.