Current through Register Vol. 43, No. 02, November 27, 2024
(1)
A title service provider, as defined in §
32-8-2, Code of Ala.
1975, may be authorized to act as an agent on behalf of a
designated agent upon satisfaction and compliance with the provisions of this
rule.
(a)
Application. The title service provider must complete
Form MVT 4-6 Application for Title Service Provider.
(b)
Memorandum of
Agreement. The title service provider must execute a Memorandum of
Agreement for Title Service Providers with the department to process title
applications.
(c)
Surety Bond. A title service provider must provide the
department a good and sufficient surety bond, executed by the applicant as
principal by a corporate surety company qualified to do business in the state
as surety, in a sum provided in §
40-12-398,
Code of
Ala. 1975. The bond shall be conditioned upon the faithful
performance of its duties as a title service provider under Chapter 8 of Title
32,
Code of Ala. 1975. The bond shall be payable to
the commissioner and must be in favor of any person who recovers any judgement
for any loss as a result of any violation of the conditions of the bond. Bond
form MVT 4-3 shall be provided by the department.
(d)
Power of
Attorney. Title service providers must have a signed Power of
Attorney (MVT 5-13) on file with the department for each designated agent that
grants the title servicer provider the authority to act on their behalf
pursuant to Chapter 8 of Title 32,
Code of Ala.
1975.
(e)
Required Classes. The title service provider must
complete the department's designated agent classes.
(f)
Submission of Title
Applications. The title service provider shall submit all title
applications on behalf of a designated agent through the department's online
title system. The title service provider may only submit title applications on
behalf of a designated agent or financial institution for which it has a
current power of attorney.
(2) An authorized title service provider may
act as an agent on behalf of a lienholder who appears on a certificate of title
provided, however, that the services performed on behalf of the lienholder may
not exceed those that the lienholder could perform on its own.
(3) The department may deny the application
or revoke the authority of a title service provider if the title service
provider fails to faithfully perform the duties under Chapter 8 of Title 32,
Code of Ala. 1975, or rules promulgated thereunder, or
has been convicted of any felony as provided for in §
32-8-3, Code of Ala.
1975.
Author: James Starling
Statutory Authority:
Code of Ala.
1975, §§ Chapter 8 of Title 32, 32-8-2, 32-8-3, 32-8-34,
40-2A-7(a)(5), 40-12-398.
