Chap. 42.—An ACT to amend and re-enact Section 17, as amended, of Chapter 342
of the Acts of the General Assembly of 1932, approved March 26, 1932, and
known, designated and cited as the Motor Vehicle Code of Virginia, said section
relating to registration cards and certificates of title, so as to give priority to
certain repair liens over liens shown on certificate of title. (H B 34]

Approved February 15, 1940

1. Be it enacted by the General Assembly of Virginia, That
section seventeen, as amended, of chapter three hundred and forty-
two of the Acts of the General Assembly of nineteen hundred and
thirty-two, approved March twenty-sixth, nineteen hundred and
thirty-two, and known, designated and cited as the Motor Vehicle
Code of Virginia, be amended and re-enacted so as to read as follows:

Section 17. Registration cards and certificates of title—(a) The
division upon receiving an application for a certificate of title for a
motor vehicle, trailer or semi-trailer shall issue to the owner a certifi-
cate of title therefor and a registration card as separate documents.
Such owner upon receiving the said registration card shall sign his
name thereon with pen and ink, in the space provided.

(b) The division upon receiving an application for a certificate
of title to a motor vehicle, trailer or semi-trailer showing liens or
encumbrances upon said motor vehicle, trailer or semi-trailer, shall,
upon issuing to the owner thereof a certificate of title therefor, show
upon the face of the certificate of title all liens or encumbrances
disclosed by such application. All such liens or encumbrances shall
be shown in the order of their priority, said priority being according
to the information contained in such application.

Liens or encumbrances placed on motor vehicles, trailers or semi-
trailers by the voluntary act of the owner after the original issue of
title to the owner must be shown on said certificates of title. In such
cases, the owner shall file application with the division on a blank
furnished for that purpose, setting forth the said lien or liens and
such information in connection therewith as the said division may
deem necessary, and the division, if satisfied that it is proper that
the same be recorded, and upon surrender of the certificate of title
covering said motor vehicle, trailer, or semi-trailer, shall thereupon
issue a new certificate of title, showing said liens or encumbrances in
the order of their priority, said priority being according to the date
of the filing of said application for same. For the purpose of recording
such subsequent lien, the director may require any lien holder to
deliver to the director the said certificate of title; upon issuing the
said new certificate it shall thereupon be sent or delivered to the said
lien holder from whom the prior certificate was obtained.

Said certificate of title of such motor vehicle, trailer or semi-
trailer shall be delivered to the person, firm or corporation holding
the first lien or encumbrance upon said motor vehicle, trailer or semi-
trailer and retained by him or them until the entire amount of his
or their lien is fully paid by the owner of said motor vehicle, trailer
or semi-trailer, when the same shall be delivered to the next lien
holder, and so on, and if none, then to the owner of said motor vehicle,
trailer or semi-trailer. Said certificate of title, when issued by the
division showing a lien or encumbrance, shall be deemed adequate
notice to the Commonwealth, creditors and purchasers that a lien
against the motor vehicle exists and the recording of such reservation
of title, lien or encumbrance in the county or city wherein the pur-
chaser or debtor resides or elsewhere is not necessary and shall not
be required. Motor vehicles, trailers or semi-trailers registered or for
which a certificate of title shall have been issued under this act shall
not be subjected to, but shall be exempt from the provisions of sec-
tions fifty-one hundred and eighty-nine and fifty-two hundred and
twenty-four of the Code of Virginia, as amended, nor shall recorda-
tion of such lien in any other place for any other purpose be required
or have any effect. Provided that if application for the registration
or recordation of a lien or encumbrance to be placed upon a motor
vehicle, trailer or semi-trailer be filed in the office of the Division of
Motor Vehicles in the city of Richmond, Virginia, within ten (10)
days from the date of such applicant’s purchase of such motor ve-
hicle, trailer or semi-trailer, it shall be as valid as to all persons,
whomsoever, including the Commonwealth, as if such registration
had been done on the day such lien or encumbrance was acquired.
The liens shown upon such certificates of title issued by the division
pursuant to applications for same, shall have priority over any other
liens against such motor vehicle, trailer or semi-trailer, however
created and recorded, except the lien of mechanics for repairs to the
extent of twenty-five dollars given by section sixty-four hundred and
forty-three of the Code of Virginia if the requirements therefor exist,
provided the mechanic furnishes the holder of any such recorded lien
who may request it with an itemized sworn statement of the work
done and materials supplied for which the said lien is claimed.

Provided, however, a levy made by virtue of an execution, fiers
facias, or other proper court order, upon a motor vehicle, trailer or
semi-trailer, for which a certificate of title has been issued by the
division, shall constitute a lien, subsequent to liens theretofore re-
corded by the division, if and when the officer making such levy
reports to the division at its office in Richmond, Virginia, on forms
provided therefor by the division, that such levy has been made,
and that the motor vehicle, trailer or semi-trailer thus levied upon
has been seized by and is in the custody of such officer, and should
such lien be thereafter satisfied or should the motor vehicle, trailer
or semi-trailer thus levied upon and seized, be thereafter released
by such officer, he shall immediately report that fact to the division
at its office in Richmond. Any owner who, after such levy and
seizure by an officer and before the report thereof by the officer to
the division, shall fraudulently assign or transfer his title to or in-
terest in such motor vehicle, trailer or semi-trailer, or cause the
certificate of title thereto to be assigned or transferred, or cause a
lien or encumbrance to be shown upon such certificate of title, shall
be deemed guilty of a misdemeanor, and upon conviction thereof
shall be fined not less than twenty-five nor more than five hundred
dollars, or imprisoned in jail for not less than ten days nor more than
twelve months.

(b14) The fee to be paid to the division for the issuance of each
certificate of title shall be one ($1.00) dollar.

(c) The registration card and the certificate of title shall each
contain upon the face thereof the date issued, the registration num-
ber assigned to the owner and to the motor vehicle, trailer or semi-
trailer, the name and address of the owner, a description of the regis-
tered motor vehicle, trailer or semi-trailer, and such other statement
of facts as may be determined by the division.

(d) The registration card shall contain upon the reverse side
forms for endorsement of the signature and notice to the division of
a transfer of the motor vehicle, trailer or semi-trailer.

(e) The certificate of title shall contain a statement of the
owner’s title and of all liens or encumbrances upon the motor ve-
hicle, trailer or semi-trailer therein described and whether possession
is held by the owner under a lease, contract or conditional sale or
other like agreement. The certificate of title shall also contain upon
the reverse side forms of assignment of title or interest and warranty
thereof with space for notation of liens and encumbrances upon such
motor vehicle, trailer or semi-trailer at the time of a transfer.

(f) Every certificate of title issued under this section shall be
valid for the life of the motor vehicle, trailer or semi-trailer so long
as the owner to whom the same is issued shall retain legal title or
right of possession of or to such vehicle, and such certificates need
not be renewed annually or at any other time except upon a transfer
of title or interest of the owner.