§ 20-75.1. Conditional delivery of motor vehicles. - North Carolina Statutes

§20‑75.1.  Conditional delivery of motor vehicles.

Notwithstanding G.S. 20‑52.1,20‑72, and 20‑75, nothing contained in those sections prohibits adealer from entering into a contract with any purchaser for the sale of avehicle and delivering the vehicle to the purchaser under terms by which thedealer's obligation to execute the manufacturer's certificate of origin or thecertificate of title is conditioned on the purchaser obtaining financing forthe purchase of the vehicle.  Liability, collision, and comprehensive insuranceon a vehicle sold and delivered conditioned on the purchaser obtainingfinancing for the purchaser of the vehicle shall be covered by the dealer'sinsurance policy until such financing is finally approved and execution of themanufacturer's certificate of origin or execution of the certificate of title. Upon final approval and execution of the manufacturer's certificate of originor the certificate of title, and upon the purchaser having liability insuranceon another vehicle, the delivered vehicle shall be covered by the purchaser'sinsurance policy beginning at the time of final financial approval andexecution of the manufacturer's certificate of origin or the certificate oftitle.  The dealer shall notify the insurance agency servicing the purchaser'sinsurance policy or the purchaser's insurer of the purchase on the day of, orif the insurance agency or insurer is not open for business, on the nextbusiness day following approval of the purchaser's financing and execution ofthe manufacturer's certificate of origin or the certificate of title.  Thissubsection is in addition to any other provisions of law or insurance policiesand does not repeal or supersede those provisions. (1993, c. 328, s. 1.)