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FACT SHEET
Transitional Ownership
Documents
PURPOSE:
This fact sheet provides basic information regarding Transitional
Ownership Documents (TODs), per Sections 49-121(7) and 49-527 through
49-530, Idaho Code. Liens on vehicles and vessels are normally
perfected by filing a title application recording the lien, together
with the title, manufacturer’s certificate of origin (MCO),
or
manufacturer’s statement of origin (MSO) within 30 days of
the transaction. When this lien perfection method cannot be used, due
to the fact that the title, MCO, or MSO is not going to be available
within 30 days, the lien can be perfected by filing a TOD
within 30 days of the sale, or if there was no sale, within 30 days of
the contract signature date. The title application, together with
the title, MCO, or MSO must then be filed within 90 days of the sale,
or if there was no sale, within 90 days of the contract signature date
to perfect the lien.
Filing or failing to file a TOD will have no effect on ownership
(whether or not a subsequent title is issued). Regardless of the
timing, a title will be issued if an application accompanied by the
appropriate ownership documents is properly filed. The sole function of the TOD is to positively
affect the recorded date of the lien on the title, which could
determine whether or not the lien has a preferred status if the owner
files for bankruptcy.
EFFECTIVE DATE
July 1, 2007.
DEFINITION:
Transitional
Ownership Document (form number ITD-3901): a document used
by a selling dealer, a new security interest holder, or an agent
working on their behalf to perfect a lien in a timely manner against
creditors or subsequent purchasers when:
- the primary ownership
document (title, MCO, or MSO) is not available, and
- the filer—to the
best of his knowledge—will not have possession
of the primary ownership document within thirty (30) days of the sale,
or if there was no sale within thirty (30) days of the contract
signature date.
To be valid, a TOD or the accompanying copy of the application for
certificate of title must include:
- the date of sale or if no
sale is involved, the signature date of the contract or security
agreement being perfected;
- the name and address of each
owner of the vehicle or vessel,
- the name and address of each
security interest holder,
- the priorities of interest
(if there are multiple security interest holders),
- the vehicle identification
number (VIN) or hull identification number (HIN), and
- the name and signature of
the security interest holder or agent (dealer or other) filing the TOD.
TOD
PROCESS
If it becomes evident that a vehicle or vessel’s primary
ownership document will not be available to file within thirty (30)
days of the sale, or if there was no sale within thirty (30) days of
the
contract signature date:
- The dealer, security
interest holder, or authorized agent may prepare a TOD, attach a copy
of the completed application for certificate of title or other proof of sale or contract, pay a
non-refundable $26.00 fee*, and either file these documents with a
county assessor motor vehicle office or the Idaho Transportation
Department headquarters (ITD) office in Boise within thirty (30) days
of the sale, or if there was no sale, within thirty (30) days of the
contract signature date. If the document is filed with ITD, the filer
will also list the TOD on a transmittal form.
*The $26.00 TOD application fee should
be paid by the dealer or lienholder. The vehicle owner should not be
expected to pay the fee.
- The receiving office will
enter the TOD onto a database for tracking purposes and forward the TOD
and supporting documents to the ITD title examination unit for review.
- If the documents are in
order they will be kept on file. If they are deficient in some respect,
they will be rejected and returned to the filer to correct the
deficiencies.
- When the primary ownership
document is received, the dealer, security interest holder, or
authorized agent will file it along with the original application for
certificate of title and any other necessary supporting documents
according to normal procedures. The filing must be done within ninety
(90) days of the sale, or if there was no sale, within ninety (90) days
of the contract signature date.
- The primary ownership
document, application for certificate of title, and supporting
documents are forwarded to the ITD title examination unit for review.
- If all title and TOD
requirements have been satisfied, the title will be issued and the lien
will be recorded with the earliest of either the TOD recorded date or the date paperwork was received.
If all TOD requirements were not
satisfied but the ITD title requirements were, the title will be issued
and the lien’s recorded date will be assigned as if no TOD
had been filed.
REASONS FOR REJECTION OR INVALIDATION
A TOD will be rejected or invalidated if:
- it was filed more than 30 days from the date of sale, or if there
was no sale, more than thirty (30) days from the contract signature
date;
- a copy of the application for certificate of title or other documetation verifying the sale or contract was not
attached
to the TOD;
- The TOD or the accompanying copy of the application for
certificate of title or other alternative documentation does not provide the required key
information (date of sale, or if there was no sale, contract signature
date, vehicle or
vessel identification number, owner name[s] and address, lienholder
name and address, owner and filer’s signatures, etc.);
- a $26.00 fee was not submitted with the TOD;
- key information on the TOD was changed or altered without
explanation;
- the TOD filer requests that the TOD be withdrawn or returned;
- the primary ownership document and application for certificate of
title were not filed within ninety (90) days of the sale, or if there
was no sale, within ninety (90) days of the contract signature
date.
- key information on the TOD does not match key information on the
application for certificate of title;
- the person filing the TOD made false statements; or
- the lienholder on the TOD did not have a lien when the TOD was
filed.
TOD WITHDRAWAL PROCEDURE
To request the withdrawal of a TOD, the dealer, lienholder, or
authorized agent must submit a withdrawal request to ITD headquarters
at the address below. The request should include the vehicle year and
make, vehicle or hull identification number, owner name(s), lienholder
name(s), and the business name and a signature of
the party requesting the withdrawal.
FORMS
All ITD forms required in the TOD process may be obtained from any
county assessor motor vehicle office, from the Idaho Transportation
Department headquarters office, or they can be downloaded from the
links below:
This fact sheet has been
provided by:
Idaho Transportation Department, Division of Motor Vehicles
PO Box 7129, Boise, ID 83707-1129
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