ROBERT L. EHRLICH, JR., Governor                             Ch. 135

(ii) Is issued before October 1, 1992 and the application is
accompanied by a statement in writing from an insurance company that the cost to
repair the vehicle was equal to or less than the fair market value of the vehicle prior
to the vehicle sustaining damage; or

(iii) Is issued for a vehicle that is more than 7 model years old.

(c)      (1) When an insurance company makes a claim settlement on a vehicle
that has been stolen, the company shall apply for a salvage certificate as provided in
§ 13-506(c) of this subtitle.

(2)     On receipt of an application under this subsection, the
Administration:

(i) Shall make the appropriate notation in its records; and

(ii) May not issue the salvage certificate until the vehicle is
recovered.

(3)     When a vehicle that has been stolen is recovered, the Administration
shall:

(i) Issue a salvage certificate for the vehicle if the insurance
company submits a certification under § 13-506(c)(2)(ii)l, 2, or 3 of this subtitle; or

(ii) Issue a certificate of title in lieu of a salvage certificate if the
insurance company states that the vehicle has not sustained damage or has sustained
only minor damage.

(4)     The provisions of subsection (b) of this section apply to a certificate of
title issued under this subsection.

(5)     A vehicle for which a certificate of title was issued under paragraph
(3)(ii) of this subsection is exempt from the vehicle excise tax as provided in §
13-810(a)(9) of this article.

(d)     If the Administration receives an application for a certificate of title for a
vehicle accompanied by an ownership document issued by another state containing a
notation under the laws of the issuing state that the vehicle is in a condition that is
substantially similar to a vehicle that is rebuilt salvage under Maryland law, the
certificate of title issued by the Administration shall contain a similar notation.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2003.

Approved April 22, 2003.

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