Marvin Mandel, Governor                          1335

6. The Department determines that the vehicle is mechanically
unfit and unsafe to be operated upon the highways of the state.

§ 3-111. Lost, stolen, or mutilated certificates.

(a)    If a certificate of title is lost, stolen, mutilated, destroyed,
or becomes illegible, the owner or the legal representative of the
owner named in the certificate, as shown by the records of the
department, shall promptly make application for and may obtain a
duplicate upon furnishing information satisfactory to the department
and upon payment of the prescribed fee. The duplicate certificate
of title shall contain the legend "This is a duplicate certificate and
may be subject to the rights of a person under the original certif-
icate."

(b)    A person recovering an original certificate of title for which
a duplicate has been issued shall promptly surrender the original cer-
tificate to the department.

§ 3-112. Transfer.

(a)    Except as otherwise provided in section 3-113, if an owner
transfers his interest in a vehicle, other than by the creation of a
security interest, at the time of the delivery of the vehicle, he shall
execute an assignment and warranty of title to the transferee, with
a statement of all liens and encumbrances thereon, in the space pro-
vided therefor on the certificate, and he shall deliver the certificate
of title to the transferee at the time of delivering the vehicle.

(b)    Except as provided in section 3-113, the transferee, promptly
after delivery to him of the vehicle, shall execute the application for
a new certificate of title in the space provided therefor on the certif-
icate or as the department prescribes, and cause the certificate and
application to be mailed or delivered to the department. If the ap-
plication for a new certificate of title is not received by the depart-
ment within 30 days after delivery of the vehicle to the transferee,
the department, in its discretion, may assess an additional service
fee of $5.00 for making the transfer of title.

(c)    It is unlawful and a misdemeanor for anyone other than a
dealer to purchase, or for any one to sell, within the limits of this
State, any used or second hand vehicle of a type for which a certif-
icate of title is required hereunder, unless

1.    A certificate of title of the vehicle has been issued by the
department or by another state; or

2.    A certificate of registration of the vehicle has been issued
by a state which does not issue certificates of title of such vehicles.

§ 3-113. Transfer to or from dealer; records.

(a) If the transferee of a vehicle is a registered dealer who holds
the vehicle for sale, he shall retain the certificate of title in his
possession. The certificate of title shall have thereon an assignment
and warranty of title executed by the former owner, and must be in
the possession of the dealer within 10 days of the date of transfer to
the registered dealer and remain therein until the further sale or
transfer of ownership of the vehicle. All certificates covering ve-