19A NCAC 03D .0227      VEHICLES OFFERED FOR SALE ON A FLOOR PLAN LIEN

(a)  A "floor plan "lien" is a revolving line of credit in which a superior financial interest in a vehicle is held by a party other than the dealer.

(b)  A dealer offering a vehicle subject to a floor plan lien for sale shall at the time of sale, satisfy the floor plan lien and obtain the title from the floor plan lienholder, execute the title documents, and deliver them to the purchaser or the lienholder as required by G.S. 20-52.1, 20-72, 20-72.1 and 20-75 at the time the vehicle is delivered.

(c)  Manufacturers Certificate of Origin may be retained by the floor plan lienholder so long as the Manufacturers Certificate of Origin is located within the boundaries of North Carolina; provided the dealer has in possession, available for inspection, an invoice from the manufacturer or distributor and a Floor Plan Lien Disclosure Statement completed, dated, and signed by both parties. The Floor Plan Lien Disclosure Statement (LT-411) includes the following:

(1)           name of lien holder;

(2)           vehicle make, model, and style;

(3)           vehicle identification number;

(4)           address of lien holder;

(5)           name of dealership;

(6)           signature of lien holder and dealer; and

(7)           date of agreement.

(d)  Mobile and manufactured home dealers shall be exempt from the requirement that the Manufacturer's Certificate of Origin be located within the boundaries of North Carolina. All other provisions of this Rule shall apply to mobile and manufactured home dealers.

History Note:        Authority G.S. 20-39; 20-52.1; 20-72; 20-72.1; 20-75;

Eff. June 1, 1988;

Amended Eff. June 1, 1995; January 1, 1994; October 1, 1991;

Readopted Eff. September 1, 2021.