A.If the department is not satisfied as to the ownership of the vehicle or is not satisfied that there are no undisclosed security interests in the vehicle, the department may register a vehicle but shall either:
1.Withhold issuance of a certificate of title until the applicant presents documents reasonably sufficient to satisfy the department as to the applicant's ownership of the vehicle and that there are no undisclosed security interests in the vehicle.
2.As a condition of issuing a certificate of title, require the applicant to file a bond with the department as prescribed in subsection B of this section.
B.The department shall prescribe the form of the bond required by subsection A of this section. The applicant shall execute the bond and either accompany it with the deposit o
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A. If the department is not satisfied as to the ownership of the vehicle or is not satisfied that there are no undisclosed security interests in the vehicle, the department may register a vehicle but shall either:
1. Withhold issuance of a certificate of title until the applicant presents documents reasonably sufficient to satisfy the department as to the applicant's ownership of the vehicle and that there are no undisclosed security interests in the vehicle.
2. As a condition of issuing a certificate of title, require the applicant to file a bond with the department as prescribed in subsection B of this section.
B. The department shall prescribe the form of the bond required by subsection A of this section. The applicant shall execute the bond and either accompany it with the deposit of cash or have a person authorized to conduct a surety business in this state also execute the bond. The bond shall be in an amount equal to one and one-half times the value of the vehicle as determined by the department and conditioned to indemnify any prior owner and lienholder and any subsequent purchaser of the vehicle or person acquiring any security interest in it and their respective successors in interest against any expense, loss or damage, including reasonable attorney fees, by reason of the issuance of the certificate of title of the vehicle or on account of any defect in or undisclosed security interest on the right, title and interest of the applicant in and to the vehicle.
C. An interested person has a right of action to recover on the bond for any breach of its condition. The aggregate liability of the surety to all persons shall not exceed the amount of the bond.
D. The bond and any deposit accompanying it shall be returned at the end of three years or prior to the end of three years if the vehicle is no longer registered in this state and the currently valid certificate of title is surrendered to the department, unless the department has been notified of the pendency of an action to recover on the bond.
E. If the applicant does not have the original certificate of title because the certificate of title is held by a lender located outside this state and if the applicant presents documents to the department sufficient in the judgment of the department to establish ownership of the vehicle, the department may register the vehicle and issue a receipt in lieu of the certificate of title provided by section 28-2052. The fee for the receipt is equal to the fee prescribed for a certificate of title pursuant to section 28-2003.