Section 12. If the registrar is not satisfied as to the ownership of the vehicle or that there are no undisclosed security interests in it, the registrar may register the vehicle but shall either:
(a) Withhold issuance of a certificate of title until the applicant presents documents reasonably sufficient to satisfy the registrar as to the applicant's ownership of the vehicle and that there are no undisclosed security interests in it; or
(b) As a condition of issuing a certificate of title, require the applicant to file with the registrar a bond in such form as the registrar shall prescribe executed by the applicant, and either accompanied by the deposit of cash with the registrar or also executed by a person authorized to conduct a surety business within the commonwealth.
The bond shall be in an amount equal to one and one half times the value of the vehicle as determined by the registrar and conditioned to indemnify any prior owner and lienholder and any subsequent purchaser of the 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 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 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 prior thereto if the vehicle is no longer registered in the commonwealth and the currently valid certificate of title is surrendered to the registrar, unless the registrar has been notified of the pendency of an action to recover on the bond. This section shall not apply to a vehicle described in subsection (e) of section 20.
Structure Massachusetts General Laws
Part I - Administration of the Government
Title XIV - Public Ways and Works
Chapter 90d - Motor Vehicle Certificates of Title
Section 2 - Exemptions; Application of Sections
Section 3 - Application of Chapter
Section 4 - Registration Under Chapter 90; Application for Certificate of Title Required
Section 5 - Owner of Implement of Husbandry, etc.; Application of Chapter, Exception
Section 6 - Certificate of Origin
Section 7 - Application for First Certificate of Title; Contents
Section 8 - Check of Application Against Records
Section 9 - Issuance and Record of Certificates of Title
Section 10 - Contents of Certificate; Distinctive Certificates; Forms; Evidence; Nature
Section 11 - Mailing of Certificate
Section 11a - Electronic Recording of Security Interests
Section 12 - Withholding of Certificate; Bond
Section 13 - Refusal of Issuance; Grounds
Section 14 - Duplicate Certificate of Title
Section 16 - Dealers; Assignment and Warranty of Title; Record of Transactions
Section 17 - Involuntary Transfers of Interests
Section 19 - Issuance to Transferee; Surrendered Certificates
Section 20 - Total Loss Salvage Motor Vehicles; Surrender of Certificate of Title; Salvage Title
Section 20a - Application for Salvage Title; Procedure
Section 20b - Exceptions to Salvage Title Requirement
Section 20c - Transfer of Interest in Vehicle With Issued Salvage Title
Section 20d - Reconstruction or Restoration of Total Loss Salvage Motor Vehicle
Section 20e - Cancellation of Certificate Upon Junking or Scrapping of Vehicle
Section 21 - Perfecting of Security Interest in Vehicle
Section 21a - Motor Vehicles or Trailers; Limitation on Creation of Sale or Security Interest
Section 24 - Satisfaction of Security Interest in Vehicle
Section 25 - Disclosure of Information by Lienholder
Section 26 - Exclusiveness of Method of Perfecting Security Interests
Section 27 - Suspension or Revocation of Certificate of Title
Section 30 - Review of Ruling or Decision of Registrar
Section 31 - Liability of Registrar or Commonwealth
Section 34 - Previously Registered Vehicle, Defined
Section 35 - Application of Chapter to Previously Registered Vehicle
Section 36 - Previously Registered Vehicle; Undisclosed Security Interest; Distinctive Certificate
Section 38 - Validity of Certificate Issued Prior to Certain Dates