Interpretation ID: nht79-1.31

DATE: 01/23/79

FROM: AUTHOR UNAVAILABLE; J. J. Levin, Jr.; NHTSA

TO: Illinois Department of Administrative Services

TITLE: FMVSR INTERPRETATION

TEXT:

JAN 23 1979

Mr. Ben Bagby Illinois Department of Administrative Services 716 Stratton Office Building Springfield, Illinois 62706

Dear Mr. Bagby:

This is in response to your letter of November 28, 1978, requesting our interpretation of the Federal odometer law. Your questions and answers are as follows:

1. Is the State of Illinois required to furnish odometer disclosure statements to purchasers of used vehicles which are sold by the State at public auction? Yes. For purposes of the Federal odometer law, it is irrelevant where or how vehicles are sold. The State is the transferor of the vehicles and as such is required under 49 CFR Part 580 to provide every transferee with an odometer disclosure statement.

2. If the Federal government donates to the State surplus vehicles, is the Federal government required to provide odometer information to the State? Is the State required to furnish odometer information to other governmental units and not-for-profit institutions to whom it sells these vehicles? The answer to both questions is yes. The Federal government has incorporated the odometer disclosure statement onto Standard Form 97, which is the form which officially transfers a vehicle and evidences its release from the custody of the Federal government. In some instances a separate form is used and is attached to Standard Form 97.

Part 580.3 of Title 49 defines "transferor" as "any person who transfers his ownership in a motor vehicle by sale, gift, or any means other than by creation of a security interest." Therefore, it is irrelevant that the vehicles were donated by the Federal government rather than sold. The State as the new owner must, likewise, provide the purchaser with a disclosure statement.

If you have any further questions, please do not hesitate to write.

Sincerely,

Original Signed By

Joseph J. Levin, Jr. Chief Counsel

November 28, 1978 Office of the Chief Counsel National Highway Traffic Safety Administration 400 7th Street, S.W. Washington, D.C. 20590

Attention: Kathy DeMeter

Dear Ms. DeMeter:

The Chicago Heights Office suggested that I contact you for a legal opinion on the following facts and questions.

1. The State of Illinois sells at public auction a number of surplus vehicles each year. For the most part the vehicles are purchased by dealers for resale, but a number are for the purchasers' personal use. Under these circumstances, is the State of Illinois required to furnish odometer information to the purchasers of the used vehicles?

2. The federal government donates to the State of Illinois a number of surplus vehicles. The State then sells these vehicles for a service charge to governmental units and select not-for-profit institutions. Under these circumstances, is the federal government required to provide odometer information to the State? Is the State required to furnish odometer information to other governmental units or not-for-profit institutions?

Let me thank you in advance for your help. Should you have any questions, please contact me at 217/782-4217.

Sincerely,

Ben Bagby Assistant Counsel

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