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|| Possession and Sale || New Title and Plates || Other Issues || Kelley Blue Book | |
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| Notation On Certificate of Origin For New Vehicle When a new motor vehicle is sold in New Jersey, the manufacturer, his agent or a dealer must execute and deliver to purchaser an assignment of certificate of origin, with names and business or residence addresses of both stated thereon, and certified to have been executed with full knowledge of contents and with consent of both purchaser and seller. See New Jersey Permanent Statutes 39:10-8 | ||
| Secuirty Interest In New Vehicle If, in connection with such sale, a security interest is taken or retained by seller to secure all or a part of the purchase price of motor vehicle, or is taken by a person who by making an advance or incurring an obligation gives value to enable purchaser to acquire rights in motor vehicle, the name and address of secured party or assignee must be noted on manufacturer's certificate of origin. Nothing in this section shall apply to security interests in motor vehicles which constitute inventory held for sale, but such interests shall be subject to chapter 9 of Title 12A of the New Jersey Statutes. See New Jersey Permanent Statutes 39:10-8 | ||
| Transfer of Used Motor Vehicle When a used motor vehicle is sold in State, seller must, with limited exceptions, execute and deliver to purchaser, an assignment of certificate of ownership. If a security interest exists at time of sale or if, in connection with sale, a security interest is taken or retained by seller to secure all or a part of purchase price of motor vehicle, or is taken by a person who by loan enables purchaser to acquire rights in motor vehicle, name and business or residence address of secured party or assignee must be noted on certificate of ownership. Nothing in section applies to security interests in motor vehicles which constitute inventory held for sale, but such interests shall be subject to chapter 9 of Title 12A of the New Jersey Statutes. See New Jersey Permanent Statutes 39:10-9 | ||
| Security Interest In case of sale subject to security interest, a certificate of ownership, with name and address of holder of encumbrance or secured party or assignee recorded thereon, is delivered to holder of encumbrance or secured party or assignee and a copy is delivered to buyer. The director collects a fee for services in issuing a certificate and copy, and for making a record of and filing the record of transaction, pursuant to this subsection. New Jersey Permanent Statutes 39:10-11 | ||
| Security Interest Noted On Record Or Abstract The director shall, on the record or abstract of every motor vehicle registered with him, which is subject to a security interest of which notice is required to be filed with him, make a notation of the existence of such security interest and shall index the same under the name of the owner of record of the vehicle, so long as the security interest remains unterminated of record. See New Jersey Permanent Statutes 39:10-14 | ||
| See New Jersey Permanent Statutes | ||
| Financing Statement With limited exceptions, when security interest is created in motor vehicle, other than a security interest which is required to be noted on certificate of origin or certificate of ownership, there is a requirement to file the certificate of ownership of vehicle, along with a financing statement on approved form. The director makes and files a record of transaction and issues a certificate of ownership, recording name and address of secured party or assignee thereon, and delivers it to secured party or his assignee. A copy of certificate of ownership so issued must be delivered to buyer. A fee is charged for services in issuing a certificate and copy and for making a record of and filing record of transaction. See New Jersey Permanent Statutes 39:10-11 | ||
| Execution and Filing Financing Statement The financing statement required to be filed pursuant to prior paragraph, need be signed only by buyer, is not required to be acknowledged or proved, and shows, in addition to matters required for proper identification of motor vehicle affected, date of security agreement, and names and addresses of parties. Filing the security agreement or a copy, or any proof of execution other than that contained in the financing statement, is not presented to director. When buyer is a corporation, it is sufficient if financing statement is signed by any officer, or by any agent designated by corporation for purpose. When more than one buyer, it is sufficient if financing statement is signed by any one of them. See New Jersey Permanent Statutes 39:10-11 | ||
| Dealer Inventory Security interests in motor vehicles which constitute inventory held for sale, are subject to U.C.C., chapter 9 of Title 12A of the New Jersey Statutes. See New Jersey Permanent Statutes 39:10-11 | ||
| Certificate Notation Instead of UCC Filing The notation of name and business or residence address of secured party or assignee, on certificate of origin or certificate of ownership, and presentation to director for notation, and the compliance with other requirements of section is used in place of all filing requirements imposed by chapter 9 of Title 12A of the New Jersey Statutes and constitutes the perfection of a security interest in the motor vehicle. However, the rights and remedies of debtors and secured parties in respect to such security interest are, except as otherwise expressly provided in this chapter, subject to and governed by the New Jersey Uniform Commercial Code provisions. See New Jersey Permanent Statutes 39:10-11 | ||
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| Possession Without Breach of Peace Unless otherwise agreed a secured party has on default the right to take possession of the collateral. In taking possession a secured party may proceed without judicial process if this can be done without breach of the peace or may proceed by action. If the security agreement so provides the secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties. Without removal a secured party may render equipment unusable, and may dispose of collateral on the debtor's premises under 12A:9-504. See New Jersey Permanent Statutes 12A:9-503 | ||
| Right To Redeem At any time before the secured party has disposed of collateral or entered into a contract for its disposition under 12A:9-504 or before discharge under 12A:9-505(2), debtor or any other secured party may unless otherwise agreed in writing after default redeem the collateral by tendering fulfillment of all obligations secured by the collateral, expenses reasonably incurred by secured party in retaking, holding and preparing the collateral for disposition, arranging for sale, and to extent provided in agreement and not prohibited by law, his reasonable attorneys' fees and legal expenses. See New Jersey Permanent Statutes 12A:9-506 | ||
| Compulsory Sale If the debtor has paid 60% of the cash price in the case of a purchase money security interest in consumer goods or 60% of the loan in the case of another security interest in consumer goods, and has not signed after default a statement renouncing or modifying his rights under this Subchapter a secured party who has taken possession of collateral must dispose of it under 12A:9-504 and if he fails to do so within 90 days after he takes possession the debtor at his option may recover in conversion or under 12A:9-507(1) on secured party's liability. See New Jersey Permanent Statutes 12A:9-505 | ||
| Acceptance As Satisfaction In any other case involving consumer goods or any other collateral a secured party in possession may, after default, propose to retain the collateral in satisfaction of the obligation. Written notice of such proposal shall be sent to the debtor if he has not signed after default a statement renouncing or modifying his rights under this subsection. In the case of consumer goods no other notice need be given. In other cases notice shall be sent to any other secured party from whom the secured party has received (before sending his notice to the debtor or before the debtor's renunciation of his rights) written notice of a claim of an interest in the collateral. If the secured party receives objection in writing from a person entitled to receive notification within 21 days after the notice was sent, the secured party must dispose of the collateral under 12A:9-504. In the absence of such written objection the secured party may retain the collateral in satisfaction of the debtor's obligation. See New Jersey Permanent Statutes 12A:9-505 | ||
| Sale and Application of Proceeds A secured party after default may sell, lease or otherwise dispose of any or all of the collateral in its then condition or following any commercially reasonable preparation or processing. Any sale of goods is subject to the Chapter on Sales (chapter 2). The proceeds of disposition must be applied in the order following to reasonable expenses of retaking, holding, preparing for sale or lease, selling, leasing and the like and, to extent provided for in agreement and not prohibited by law, reasonable attorneys' fees and legal expenses incurred by secured party. The proceeds are next applied to satisfaction of debt secured by the security interest under which the sale is made. See New Jersey Permanent Statutes 12A: 9-504 | ||
| Notice To Subordinate Liens If proceeds remain, they would next apply to satisfaction of debt secured by any subordinate security interest in the collateral, if written notice of demand is received before distribution of proceeds is completed. If requested by secured party, holder of a subordinate security interest must seasonably furnish reasonable proof of interest, and unless he does so, secured party need not comply with demand. See New Jersey Permanent Statutes 12A: 9-504 | ||
| Accounting And Deficiency If the security interest secures debt, secured party must account to debtor for any surplus, and, unless otherwise agreed, debtor is liable for any deficiency. See New Jersey Permanent Statutes 12A: 9-504 | ||
| Public or Private Sale After Notice Disposition of the collateral may be by public or private proceedings and may be at any time and place and on any terms, but every aspect of disposition including method, manner, time, place and terms must be commercially reasonable. Unless collateral is perishable or threatens to decline speedily in value, reasonable notice of the time and place of any public sale, or the time after which any private sale is to be made, must be sent by secured party to debtor, if debtor has not signed, after default, a statement renouncing or modifying right to notice of sale. In case of consumer goods no other notice need be sent. In other cases notice must be sent to any other secured party from whom secured party has received, before sending notice to debtor or before renunciation of rights, written notice of claim of interest in the collateral. See New Jersey Permanent Statutes 12A: 9-504 | ||
| New Jersey Uniform Commercial Code - N.J.S.A. §§ 12A: 9-101 to 12A: 9-507 | ||
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