CHAPTER 810-5-76 ODOMETER DISCLOSURE

810-5-76-.01 Odometer Disclosure Requirements.

(1) Alabama title certificates and all forms utilized within this state involving each motor vehicle transfer including bills of sale from out-of-state motor vehicle dealers and/or applications for inspection of restored motor vehicles, application to record liens, and applications for replacement titles, supplemental assignment/reassignment forms shall henceforth include the odometer disclosure information required by Title 15, United States Code, § 1981, et seq., as amended.

(2) Applications for certificate of title, certificates of title supplemental assignment/reassignment forms prepared by licensed motor vehicle dealers, and bills of sale from out of state licensed motor vehicle dealers that do not reflect the required federal odometer disclosure information shall be accompanied by a completed separate federal odometer disclosure form from each transferor to maintain an odometer audit trail as well as an ownership trail.

(3) The disclosure information required above shall be provided in the following format:

(a) Federal law (and state law, if applicable) requires that you state the mileage in connection with the transfer of ownership. Failure to complete or providing a false statement may result in fines and/or imprisonment.

(b) I state that the odometer now reads _________ miles (no tenths), and to the best of my knowledge, that it reflects the actual mileage of the vehicle described herein, unless one of the following statements is checked:

1. I hereby certify that to the best of my knowledge the odometer reading reflects the amount of mileage in excess of its mechanical limits.

2. I hereby certify that the odometer reading is not the actual mileage. WARNING-ODOMETER DISCREPANCY.

Author: Charles A. Patton.

Statutory Authority: Code of Ala. 1975, § 32-8-3(b)(12). Truth in Mileage Act of 1986. Pub. L. 99-579, enacted by Congress and implemented by rule of the National Highway Traffic Safety Administration (NHTSA). Department of Transportation to be effective as of April 29, 1989.

History: Adopted by reference February 8. 1989; filed March 16, 1989.

(1) The Federal Truth-in-Mileage Act of 1986 permits states to provide a power of attorney form for use by owners when transferring their motor vehicles, and their certificate of title is held by a duly recorded lienholder, or the certificate of title is lost, and a replacement certificate of title must be obtained. Such power of attorney can be used to disclose the vehicle's odometer reading in the assignment of title by the titled owner and will also permit the transferee to complete the assignment of title to the transferee. The odometer disclosure in the title assignment must be exactly as stated in the odometer disclosure made in the power of attorney.

(2) The Federal Truth-in-Mileage Act of 1986 mandates that the power of attorney, utilized to transfer a vehicle under the above conditions, be printed by a secure printing process. The Final Rule issued by the National Highway Traffic Safety Administration (NHTSA) regarding such secure P.O.A., defines an original P.O.A. in such a manner that allows for the use of a multiple-part secure power of attorney form where each part is considered to be an original when the copies are printed on secure paper. When a secure P.O.A. is utilized, all signatures (both seller and dealer) must be original on all parts of the secure P.O.A., not just the top part.

(3) MVT Form 8-4 is to be used for the purpose described above. Upon the sale of a vehicle by a dealership, or upon the declaration of a total loss by an insurance company where a MVT 8-4 secure P.O.A. has been utilized, the dealer or insurance company must follow the procedures as outlined herein for the following types of transactions.

A. If vehicle is sold at retail to an Alabama resident, the original secure power of attorney must be submitted along with title application in new owner's name and outstanding title to the Motor Vehicle Division with appropriate fee and remittance advice.

B. If vehicle is sold at retail to a nonresident of Alabama, the selling Alabama dealer must submit a copy (page 2-file copy) of the secure power of attorney (containing all original signatures) along with a copy of the title (front and back) to the Motor Vehicle Division. No fee is required. The original secure power of attorney and title should be given to the owner and/or lienholder, if required, for titling in the owner's resident state.

C. If vehicle is sold at wholesale to an Alabama dealer or a dealer outside of Alabama, the selling Alabama dealer must submit a copy (page 2-file copy) of the secure power of attorney (containing all original signatures) along with a copy of the title (front and back) to the Motor Vehicle Division. No fee is required. The original secure power of attorney and title should be given to the purchasing dealer.

D. If vehicle is declared to be a total loss by an insurance company and the company subsequently satisfied the lienholder for the insured by the payment of such loss, the insurance company may obtain a secure P.O.A. from the titled owner whereby the insurance company will be the purchaser and utilize the secure P.O.A. to complete assignment by registered owner. The original secure P.O.A. must be submitted along with MVT 41-1 application for a salvage title in the insurance company's name and outstanding title to the Motor Vehicle Division with appropriate fee and remittance advice.

Author: Winston Hyte.

Statutory Authority: Federal Truth-in-Mileage Act of 1986.

History: Filed May 18, 1990; August 22, 1990. Filed April 20, 1992; August 14, 1992.