§ 31-3.1-9. Registration without certificate of title — Bond.
If the division of motor vehicles is not satisfied as to the ownership of the vehicle
or that there are no undisclosed security interests in it, the division of motor vehicles
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 division of motor vehicles 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
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§ 31-3.1-9. Registration without certificate of title — Bond.
If the division of motor vehicles is not satisfied as to the ownership of the vehicle
or that there are no undisclosed security interests in it, the division of motor vehicles
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 division of motor vehicles 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 division of motor vehicles a bond in the form prescribed by the division of motor
vehicles and executed by the applicant, and either accompanied by the deposit of cash
with the division of motor vehicles or also executed by a person authorized to conduct
a surety business in this state. The bond shall be in the amount equal to one and
one-half (1½) times the value of the vehicle, as determined by the division of motor
vehicles. This amount will be 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's fees, by reason of the issuance of the certificate
of title of the vehicle or an account of any defect in or undisclosed security interest
upon the right, title, and interest of the applicant in and to the vehicle. Any interested
person has 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, and any deposit accompanying it, shall be returned at the end
of three (3) years or prior to that time if the vehicle is no longer registered in
this state and the currently valid certificate of title is surrendered to the division
of motor vehicles unless the division of motor vehicles has been notified of the pendency
of an action to recover on the bond.