1. (a) Place of application. The owner of a non-repairable or salvage motor vehicle who is required to obtain or voluntarily chooses to obtain a non-repairable or salvage vehicle title, as provided by §217.62 of this subchapter (relating to Requirement for Non-repairable or Salvage Vehicle Title), shall apply for a non-repairable or salvage vehicle title by submitting an application, the required accompanying documentation, and the statutory fee to the department.

2. (b) Information on application. An applicant for a non-repairable or salvage vehicle title shall submit an application on a form prescribed by the department. A completed form, in addition to any other information required by the department, must include:

   1. (1) the name and current address of the owner;
   2. (2) a description of the motor vehicle, including the motor vehicle's model year, make, model, identification number, body style, manufacturer's rated carrying capacity in tons for commercial vehicles, and empty weight;

   3. (3) a statement describing whether the motor vehicle is a non-repairable or salvage motor vehicle; and

      1. (A) was the subject of a total loss claim paid by an insurance company under Transportation Code, §501.092 or §501.093;
      2. (B) is a self-insured motor vehicle under Transportation Code, §501.094;
      3. (C) is an export-only motor vehicle under Transportation Code, §501.099;
      4. (D) was sold, transferred, or released to the owner or former owner of the motor vehicle; or
      5. (E) was sold, transferred, or released to a buyer at casual sale by a salvage vehicle dealer, insurance company, or salvage pool operator;
   4. (4) whether the damage was caused exclusively by flood;
   5. (5) a description of the damage to the motor vehicle;
   6. (6) the odometer reading and brand, or the word "exempt" if the motor vehicle is exempt from federal and state odometer disclosure requirements, if the motor vehicle is a salvage motor vehicle;
   7. (7) the name, address, and city and state of residence of the previous owner;
   8. (8) the name and mailing address of any lienholder and the date of lien, as provided by subsection (e) of this section; and
   9. (9) the signature of the applicant or the applicant's authorized agent and the date the certificate of title application was signed.

3. (c) Accompanying documentation. A non-repairable or salvage vehicle title application must be supported, at a minimum, by:

   1. (1) evidence of ownership, as described by subsection (d)(1) or (3) of this section, if the applicant is an insurance company that is unable to locate one or more of the owners;
   2. (2) an odometer disclosure statement properly executed by the seller of the motor vehicle and acknowledged by the purchaser, if the motor vehicle is less than 10 model years old and the motor vehicle is a salvage motor vehicle; and
   3. (3) a release of any liens.

4. (d) Evidence of non-repairable or salvage motor vehicle ownership.

   1. (1) Evidence of non-repairable or salvage motor vehicle ownership properly assigned to the applicant must accompany the application for a non-repairable or salvage vehicle title, except as provided by paragraph (2) of this subsection. Evidence must include documentation sufficient to show ownership to the non-repairable or salvage motor vehicle, such as:

      1. (A) a Texas Certificate of Title;
      2. (B) a certified copy of a Texas Certificate of Title;
      3. (C) a manufacturer's certificate of origin;
      4. (D) a Texas Salvage Certificate;
      5. (E) a non-repairable vehicle title;
      6. (F) a salvage vehicle title;

      7. (G) a comparable ownership document issued by another jurisdiction, except that if the applicant is an insurance company, evidence must be provided indicating that the insurance company is:

         1. (i) licensed to do business in Texas; or
         2. (ii) not licensed to do business in Texas, but has paid a loss claim for the motor vehicle in this state; or
      8. (H) a photocopy of the inventory receipt or a title and registration verification evidencing surrender to the department of the negotiable evidence of ownership for a motor vehicle as provided by §217.65 of this subchapter (relating to Dismantling, Scrapping, or Destruction of Motor Vehicles), and if the evidence of ownership surrendered was from another jurisdiction, a photocopy of the front and back of the surrendered evidence of ownership.

   2. (2) An insurance company that acquires ownership or possession of a non-repairable or salvage motor vehicle through payment of a claim may apply for a non-repairable or salvage vehicle title without obtaining the proper assignment of the owner on the salvage motor vehicle ownership document if:

      1. (A) the motor vehicle is covered by a certificate of title issued by this state or a manufacturer's certificate of origin;
      2. (B) the insurance company is unable to locate one or more owners of the motor vehicle;
      3. (C) at least 46 days have elapsed since payment of the claim;
      4. (D) the insurance company has obtained the release of all liens on the motor vehicle; and
      5. (E) the insurance company has provided notice to each owner who has not been located, at the last known address in the department's record, by certified mail, return receipt requested, and, if the notice is returned as unclaimed, undeliverable, or with no forwarding address, has made notice by publication in a newspaper of general circulation in the area where the unclaimed notice was sent.

   3. (3) An insurance company to which paragraph (2) of this subsection applies shall submit the following documentation, in lieu of the properly assigned evidence of ownership:

      1. (A) evidence of ownership, as provided by paragraph (1) of this subsection, without proper assignment;

      2. (B) proof of notification (original or a copy if the insurance company maintains mail records electronically) made by certified mail to each recorded owner that includes:

         1. (i) the United States Post Office validated receipts for certified mail and return receipt, together with any unopened certified letters returned by the post office as unclaimed, undeliverable, or with no forwarding address; and
         2. (ii) if the certified letters were returned as unclaimed, undeliverable, or with no forwarding address by the post office, a legible photocopy of the notice made by newspaper publication, as required by paragraph (2)(E) of this subsection, that includes the name of the publication and the date of publication.
5. (e) Recordation of lien on non-repairable and salvage vehicle titles. If the motor vehicle is a salvage motor vehicle, a new lien or a currently recorded lien may be recorded on the salvage vehicle title. If the motor vehicle is a non-repairable motor vehicle, only a currently recorded lien may be recorded on the non-repairable vehicle title.

6. (f) Issuance. Upon receipt of a completed non-repairable or salvage vehicle title application, accompanied by the statutory application fee and the required documentation, the department will, before the sixth business day after the date of receipt, issue a non-repairable or salvage vehicle title, as appropriate.

   1. (1) If the condition of salvage is caused exclusively by flood, a "Flood Damage" notation will be reflected on the face of the document and will be carried forward upon subsequent title issuance.
   2. (2) If a lien is recorded on a non-repairable or salvage vehicle title, the vehicle title will be mailed to the lienholder. For proof of ownership purposes, the owner will be mailed a receipt or printout of the newly established motor vehicle record, indicating a lien has been recorded.

   3. (3) A non-repairable vehicle title will state on its face that the motor vehicle may:

      1. (A) not be repaired, rebuilt, or reconstructed;
      2. (B) not be issued a regular certificate of title or registered in this state;
      3. (C) not be operated on a public highway; and
      4. (D) may only be used as a source for used parts or scrap metal.

Source Note:The provisions of this §217.63 adopted to be effective March 4, 2010, 35 TexReg 1761.