Interpretation ID: aiam4206
President
REMCO
4138 So. 89th Street
Omaha
NE 68127;
Dear Mr. Glesmann: This is in response to your letter of June 4, 1986, and your subsequen conversation with Judith Kaleta of the Office of Chief Counsel and Richard Morse, Chief of the Odometer Fraud Staff.; Your company, REMCO, has designed a system whereby the odometer on vehicle being towed behind a recreational vehicle (RV) would not accumulate mileage. As you describe it, it is a mechanical disconnect system. Disconnection can only be from the RV by use of a mechanical clutch system while the towed vehicle is connected to the RV. When the towed vehicle is disconnected from the RV, the odometer functions automatically.; The Federal law states that 'No person shall, with intent to defraud operate a motor vehicle on any street or highway knowing that the odometer of such vehicle is disconnected or nonfunctional.' 15 U.S.C. S 1988. Therefore, you asked whether in NHTSA's opinion, the use of the system violates the law.; While the term 'operate' has not been defined in Title IV of the Moto Vehicle Information and Cost Savings Act (the 'Act'), 15 U.S.C. SS 1981-1991, NHTSA has interpreted it to mean drive or tow with a load on the major components. When a vehicle is driven, load is put on the engine, transmission and other components of the drive train. Because REMCO's system puts no load on any components of the drive train, the towed vehicle is not being operated on the streets or highways in violation of the Act. However, persons utilizing the system should be advised that they must notify their buyer of the fact that the vehicle's odometer was disconnected.; Federal regulations, 49 C.F.R. S 580.4, provide for the inclusion o two sets of certifications on the odometer disclosure statements which must be completed at the time a vehicle is transferred. Transferors who tow their vehicles utilizing your system should check the first box of the first set which reads:; >>>I hereby certify that to the best of my knowledge the odomete reading as stated above reflects the actual mileage of the vehicle described below.<<<; However, there is no statement in the second set of certification which applies to this situation. Therefore, transferors who have used your system to tow their vehicle should add a fourth statement which reads:; >>>I hereby certify that the odometer was disconnected when the vehicl was in tow.<<<; The purpose of the Act is to establish certain safeguards for th protection of motor vehicle purchasers. We feel this disclosure is consistent with the purpose of the Act.; I hope this information is helpful to you. If you have any additiona questions, do not hesitate to call me.; Sincerely, Erika Z. Jones, Chief Counsel