§ 20-76. Title lost or unlawfully detained; bond as condition to issuance of new certificate. - North Carolina Statutes

§ 20‑76.  Title lost orunlawfully detained; bond as condition to issuance of new certificate.

(a)        Whenever theapplicant for the registration of a vehicle or a new certificate of titlethereto is unable to present a certificate of title thereto by reason of thesame being lost or unlawfully detained by one in possession, or the same isotherwise not available, the Division is hereby authorized to receive suchapplication and to examine into the circumstances of the case, and may requirethe filing of affidavits or other information; and when the Division issatisfied that the applicant is entitled thereto and that G.S. 20‑72 hasbeen complied with, it is hereby authorized to register such vehicle and issuea new registration card, registration plate or plates and certificates of titleto the person entitled thereto, upon payment of proper fees.

(b)        Whenever theapplicant for a new certificate of title is unable to satisfy the Division thathe is entitled thereto as provided in subsection (a) of this section, theapplicant may nevertheless obtain issuance of a new certificate of title byfiling a bond with the Division as a condition to the issuance thereof. Thebond shall be in the form prescribed by the Division and shall be executed bythe applicant. It shall be accompanied by the deposit of cash with theDivision, be executed as surety by a person, firm or corporation authorized toconduct a surety business in this State or be in the nature of a real estatebond as described in G.S. 20‑279.24(a). The bond shall be in an amountequal to one and one‑half times the value of the vehicle as determined bythe Division and conditioned to indemnify any prior owner or lienholder, anysubsequent purchaser of the vehicle or person acquiring any security interesttherein, and their respective successors in interest, against any expense, lossor  damage, reason of the issuance of the certificate of title to the vehicleor on account of any defect in or undisclosed security interest in the right,title and interest of the applicant in and to the vehicle. Any person damagedby issuance of the certificate of title shall have a right of action to recoveron the bond for any breach of its conditions, but the aggregate liability ofthe 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 years orprior thereto if the vehicle is no longer registered in this State and thecurrently valid certificate of title is surrendered to the Division, unless theDivision has been notified of the pendency of an action to recover on the bond.(1937, c. 407, s. 40; 1947, c. 219, s. 7; 1961, c. 360, s. 11; c. 835,s. 10; 1975, c. 716, s. 5.)