The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 23 V.S.A. § 3813)
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§ 3813. Withholding of certificate; bond required
If the Commissioner is not satisfied as to the ownership of the vessel, snowmobile,
or all-terrain vehicle or that there are no undisclosed security interests in it,
the Commissioner may register the vessel, snowmobile, or all-terrain vehicle, but
shall either:
(1) withhold issuance of a certificate of title until the applicant presents documents
reasonably sufficient to satisfy the Commissioner as to the applicant’s ownership
of the vessel, snowmobile, or all-terrain vehicle and that there are no undisclosed
security interests in it; or
(2) as a condition of issuing a certificate of title, require the applicant to file with
the Commissioner a bond in the form prescribed by the Commissioner and executed by
the applicant, and either accompanied by the deposit of cash with the Commissioner
or also executed by a person authorized to conduct a surety business in this State.
The bond shall be in an amount equal to one and one-half times the value of the vessel,
snowmobile, or all-terrain vehicle as determined by the Commissioner and conditioned
to indemnify any prior owner and lienholder and any subsequent purchaser of the vessel,
snowmobile, or all-terrain vehicle or person acquiring any security interest in it,
and their respective successors in interest, against any expense, loss, or damage,
including reasonable attorney’s fees, by reason of the issuance of the certificate
of title of the vessel, snowmobile, or all-terrain vehicle or on account of any defect
in or undisclosed security interest upon the right, title, and interest of the applicant
in and to the vessel, snowmobile, or all-terrain vehicle. Any such interested person
has a right of action to recover on the bond for any breach of its conditions, but
the aggregate liability of the surety to all persons shall not exceed the amount of
the bond. The bond, and any deposit accompanying it, shall be returned at the end
of three years or earlier if the vessel, snowmobile, or all-terrain vehicle is no
longer registered in this State and the currently valid certificate of title is surrendered
to the Commissioner, unless the Commissioner has been notified of the pendency of
an action to recover on the bond. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 10; 2019, No. 131 (Adj. Sess.), § 250.)