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§ 430. Retail  sale  of junk and salvage vehicles. 1. Whenever a motor
vehicle for which a notice  of  acquisition  is  required  to  be  filed
pursuant  to  section  four hundred twenty-nine of this article is to be
registered for use on the public highway, the person holding  the  proof
of ownership for such vehicle must surrender such proof of ownership and
make  application  for  a  certificate  of  title.  Except  as otherwise
provided herein, the commissioner shall require the physical examination
of any such vehicle by a designated employee of the department before  a
title  will  be issued. Upon a request made with such an application for
title, the commissioner may issue a  temporary  permit  which  shall  be
valid for the operation of such vehicle upon the public highways of this
state,  in  accordance with regulations promulgated by the commissioner,
from the date of its issuance until five days after the  scheduled  date
of the examination for such vehicle, including the transportation of the
motor  vehicle  to  and from the physical examination site, provided the
application is accompanied  by  proof  of  inspection  and  evidence  of
insurance   coverage   satisfactory   to  the  commissioner.  Upon  such
examination for identification, the  employee  making  such  examination
shall,  in  accordance with regulations promulgated by the commissioner,
determine whether a  special  vehicle  identification  number  shall  be
issued  for  such  vehicle.  A fee of one hundred fifty dollars shall be
paid to the commissioner before such examination shall be  scheduled  or
made.  Such fee shall be forfeited if the motor vehicle is not presented
for examination as scheduled unless the appointment for such examination
has  been  cancelled  or  postponed  in  accordance   with   regulations
promulgated  by  the  commissioner.  If a special vehicle identification
number is issued after such examination,  no  additional  fee  shall  be
required for such issuance.
  2.  The  provisions  of  subdivision  one  of this section relating to
inspection for identification by an employee of the department shall not
apply to a motor vehicle which has  been  transferred  to  an  insurance
company in settlement of a claim for the theft of such vehicle, provided
the following conditions are met:

(i) no major component part of the motor vehicle has been replaced since the theft of such vehicle,

(ii) repairs made to the motor vehicle since the recovery of such vehicle either have not exceeded one-fourth of the amount paid by the insurance company in settlement of the claim or have not exceeded one thousand dollars,

(iii) the vehicle identification number and all other manufacturers' identifying numbers on the motor vehicle have been examined by the insurance company and are intact in the same form as at the time of the theft of such vehicle,

(iv) an affidavit sworn to by an officer of the insurance company is submitted by the insurance company which made payment in settlement of the claim for theft with the application for title certifying to the above conditions, which affidavit shall also certify additional facts as required by the commissioner relating to the theft and recovery of such vehicle and the amount of settlement and repair costs. 3. The commissioner may, by regulation, exempt vehicles from the physical examination required by subdivision one of this section based upon the age of the vehicles if the commissioner deems that such physical examination would not further the purposes of the motor vehicle theft prevention program established by section two hundred twenty-three of this chapter. 4. Fees; deposited. Fees assessed under this section shall be paid to the commissioner for deposit to the general fund, with the exception of the fifty dollar increase in the fee for scheduling an examination pursuant to subdivision one of this section, which shall be deposited to the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law and the dedicated mass transportation fund established pursuant to section eighty-nine-c of the state finance law and distributed according to the provisions of subdivision (d) of section three hundred one-j of the tax law.