1. (1) Dealers are required to maintain a permanently bound book of registry in which shall be recorded a complete description of all vehicles acquired for purpose of sale, traded or sold, and shall also have recorded a record of the name and address of the person from whom the vehicle was purchased, the last registration plate number displayed on the vehicle and the odometer reading when the vehicle was purchased. This book shall also contain the name and address of the purchaser of the vehicle, the date of sale, the number of the MV-50 (certificate of sale) issued, the number of the MV-53 or MV-TCR (temporary certificate of registration) issued, and a record of the loan of a dealer's plate to include the date upon which the plate was returned. Where the vehicle is required to be inspected prior to sale, there will be entered in the book of registry the sticker number and date of inspection and, the odometer reading when the vehicle is sold. If the vehicle is a vehicle which requires a certificate of title, the number of liens listed on the application must also be listed in such book. If a temporary certificate of registration is issued, the name of the purchaser's insurance company, policy number and date shall be entered in the book of registry.

2. (2) When a purchaser trades in a vehicle not subject to the certificate of title law to a dealer, the registration renewal stub must be completely filled out, showing the transfer of the vehicle to the dealer and must be signed at the time of trade-in. If the vehicle is a titled vehicle, the certificate of title assigned to the dealer at the time of trade-in must be obtained by the dealer.

   (b) Record of ownership of vehicles.

   The dealer must maintain proof of ownership of all vehicles transferred to him as long as they remain the property of the dealer. A dealer may make copies of all proofs of ownership for his own records if he so desires, but the entries required to be made in the book of registry will constitute the official records of the dealer and must be kept for a period of three years from the date of sale of the vehicle.

   (c) Retaining books of forms MV-50 and MV-53.

   The use of certificate of sale books (MV-50) and temporary certificate of registration books (MV-53) will be continued from year to year. Unused books should be retained when registration is renewed. However, on and after April 1, 1993, form MV-53 may not be used and form MV-TCR must be issued. A dealer must destroy any remaining, unused MV-53 forms on that date. Dealer copies of issued MV-50 forms must be retained for at least five years from the date of issuance, after which they may be destroyed.

   (d) Inspection of records.

   Records required by the commissioner shall be open for inspection during reasonable business hours.

   (e) Computerized book of registry.

   A dealer may use a computer and approved software to keep a record of vehicles bought and sold, instead of the permanently bound book required by subdivision (a) of this section, if all of the following conditions are met:

3. (1) The software is approved in accordance with subdivision (f) of this section.
4. (2) All information required by subdivision (a) of this section for a book of registry is recorded.
5. (3) Not later than the fifth day each month, or more often, the recorded information for each vehicle acquired or transferred during the previous month must be printed out and stored in chronological order for at least three years.
6. (4) The print-outs, including one for the period from the last print-out to the current day, must be made available to an agent of the commissioner upon request.

7. (5) The dealership notifies the commissioner which software it has bought at least seven days before using the software. A notice should be sent to the Department of Motor Vehicles, Division of Vehicle Safety Services, Empire State Plaza, Albany, NY 12228.

   (f) Approval requirements for computerized books of registry.

8. (1) A manufacturer of software may apply for its software for a computerized book of registry to be approved for use by dealerships by submitting a sample of the software with accompanying written explanation to the Department of Motor Vehicles, Division of Vehicle Safety Services, Empire State Plaza, Albany, NY 12228. The commissioner may request a demonstration of the program. The software will be approved if it meets all the following conditions:

   1. (i) all information required by subdivision (a) of this section may be recorded;
   2. (ii) once a record is entered into a file, it cannot be modified in any way unless both the original and the revision(s) are printable and are cross-referenced to each other;
   3. (iii) security features to insure that the program (software) and its components cannot be duplicated are present;
   4. (iv) the program allows for creation of a back-up copy of the record;
   5. (v) the system will automatically reject entry of an odometer reading entered in sales record that is lower than that entered in the purchase record;
   6. (vi) the system must assign sequentially ascending stock numbers on each “add” entry for at least three years; and
   7. (vii) the manufacturer agrees to notify the commissioner by letter at the above address of each sale, lease or installation of the approved software.
9. (2) An approval may be suspended or revoked if it is later found that the software does not meet the requirements for approval or if the manufacturer does not notify the commissioner of each sale of the approved software.

(a) Record of vehicles bought and sold.