Interpretation ID: aiam1058
Esq.
830 Hospital Trust Building
Providence
RI 02903;
Dear Mr. Flink: This is in response to your letter of March 7, 1973, concerning th Federal Odometer Disclosure Requirements, 49 CFR Part 580. Our replies to your numbered questions are as follows:; >>>1) The disclosure statement specified by section 408(a) of P.L 92-513 must contain the indicated mileage, regardless of whether the transferor knows the indicated mileage to be wrong. Subsections (1) and (2) of section 408(a) are not stated in the alternative. The statement of mileage specified in (1) is thus required by our regulation to be given upon each transfer. In addition, the statute provides that 'if the odometer reading is *known* to be different from the number of miles the vehicle has actually traveled,' the actual mileage shall be disclosed as unknown. (emphasis supplied) There are numerous commercial situations, such as repossessions, in which the party obtaining possession of the vehicle has had no prior control over the vehicle's operation. In such situations, the repossessing party should not state, upon resale, that the mileage is unknown unless he knows, or has a reasonable belief, that the odometer is wrong.; 2) We have no object to your including a space on the form to indicat mileage beyond the mechanical limits of the odometer.; 3) The phrase 'true mileage unknown' is not obligatory. If th transferor knows the indicated mileage is wrong, he must say so and must state, in substance, that the actual or true mileage is not known. There are only a few ways in which he can convey this thought accurately, but the regulation does not compel him to choose the phrase 'true mileage unknown.'; 4) Our reading of the Rhode Island law leaves us in doubt as to whethe it requires the true mileage to be entered on the form in the event the indicated mileage is wrong. Paragraph (2) of section 31-23.2-6 appears to have the same effect as section 408(a)(2) of P.L. 92-513. A statement of the actual mileage would not be compatible with the statement under Federal law that the true mileage is unknown, but we do not see that a transferor would be required under Rhode Island law to make such an incompatible statement.; 5) No. The State form may be used. 6) The date required is the date of transfer. The date of th disclosure statement will rarely be different, but if it is, the date of transfer should be used on the statement.; 7) Yes. Yours truly, Richard B. Dyson, Assistant Chief Counsel