Section 75 IAC 2-2-12 - Consignment salesAuthority: IC 9-23-0.7-1
Affected: IC 9-13-2-105; IC 9-32-2-6
Sec. 12.
(a) As used in this section, "consignment sales lot" means a business which conducts twelve (12) or more (retail or wholesale) consignment sales per year for which ownership is never transferred to a broker as defined in IC 9-32-2-6.(b) A consignor who consigns a vehicle to a consignee to be offered for sale and sold by the consignee on behalf of the consignor to a third party purchaser must provide the consignee with either the title to the vehicle along with a power of attorney designating the consignee as the agent of the consignor or a duly executed consignment agreement between the consignor and the consignee. The consignor must be identified to the buyer by the consignee.(c) A consignment agreement for consignment sales must contain, but is not limited to, the following information:(1) The name and current address of the vehicle's titled owner and person having possession of the title.(2) The name and current address of any party holding a lien on the vehicle.(3) The name and current address of the party to which the vehicle was consigned for sale.(4) A description of the vehicle, including the vehicle's make, model, color, and manufacturer's vehicle identification number.(5) A statement showing that the consignor has appointed the consignee as an agent for the purpose of offering the vehicle for sale.(6) Any sales conditions that must be met by the consignee.(d) Consignment arrangements do not apply to a licensed dealer's inventory. Consignment agreements must be completed for each vehicle offered for sale on the consignment sales lot regardless of whether or not the consignor has provided a title. Copies of the consignment agreement must be maintained continuously for a period of three (3) years.(e) The vehicle should be plated by the consignor and insured by the consignor for the purpose of demonstration of the vehicle. The consignee is not eligible for interim plates under section 15 of this rule.(f) The consignment sales lot must meet the requirements of a dealer's location, office, and zoning provisions.Secretary of State; 75 IAC 2-2-12; filed Jan 5, 1994, 5:00 p.m.: 17 IR 978; readopted filed Jul 30, 2001, 10:26 a.m.: 24 IR 4229; readopted filed Nov 21, 2007, 10:47 a.m.: 20071219-IR-075070701RFA; errata filed Jul 22, 2013, 10:52 a.m.: 20130807-IR-075130343ACA; readopted filed Nov 13, 2013, 3:25 p.m.: 20131211-IR-075130451RFAUnder P.L. 184-2007, SECTION 66, 140 IAC 3.5-2-14 was renumbered by the Publisher as 75 IAC 2-2-12, effective July 1, 2007.