Section 1020.50 Consignment Sales by Dealers

Section 1020

Section 1020.50  Consignment

Sales by Dealers

a)         Definitions.  For purposes of this Section, the following

words shall have the following meanings:

"Consignment Agreement" is an agreement between the owner of a

vehicle, known as the consignor, and a licensed vehicle dealer, known as the

consignee, wherein the owner delivers physical possession of the vehicle to the

dealer for the specific purpose of having the dealer sell the vehicle for the

owner and also with the intent that if the vehicle is not sold by the dealer,

it is to be returned to the owner.

"Letter of consignment" is the written document evidencing the

consignment agreement between the vehicle owner and the dealer, which

authorizes the dealer to have possession of the vehicle.

"Odometer reading" is the actual reading of the odometer of the

vehicle at the time of the signing of the consignment agreement.  This odometer

reading shall not relieve the parties of complying with the federal odometer

statement requirements found in 15 U.S.C. 1981 et seq., 1982, nor the separate

and distinct Illinois odometer statements requirements found in Section 3-112.1

of the Illinois Vehicle Code (Ill. Rev. Stat. 1983, ch. 95½, par. 3-112.1).

"Ownership document" is a certificate of title, a salvage

certificate, a junking certificate, or a similar document issued by the State

of Illinos or another state, which evidences ownership according to the laws of

the state of issuance.

b)         Documents required

er statements requirements found in Section 3-112.1

of the Illinois Vehicle Code (Ill. Rev. Stat. 1983, ch. 95½, par. 3-112.1).

"Ownership document" is a certificate of title, a salvage

certificate, a junking certificate, or a similar document issued by the State

of Illinos or another state, which evidences ownership according to the laws of

the state of issuance.

b)         Documents required.  In any transaction whereby a dealer

agrees to enter into a consignment agreement involving a vehicle which is

required to be titled and licensed in this state, the dealer must secure and

have in his possession the following documents:

1)         a letter of consignment;

2)         the proper ownership document as defined in paragraph (a)

above; if that document is in the possession of a lienholder, then a

photostatic copy of that document;

3)         a power of attorney authorizing the dealer to assign the

ownership document and also to apply for a duplicate ownership document should

the original be lost, stolen, or mutilated.

c)         Letter of consignment – contents.  The letter of consignment

shall contain the following information:

1)         the year, make, model, color and odometer reading of the

vehicle;

2)         the vehicle identification number;

3)         the type, number and state of issuance of the ownership document;

4)         The names and addresses of all lienholders;

5)         the name and address of the person in possession of the

ownership document;

6)         the date the vehicle was received by the dealer;

7)         the owner's full name, address, phone number, and driver's

license number

the vehicle identification number;

3)         the type, number and state of issuance of the ownership document;

4)         The names and addresses of all lienholders;

5)         the name and address of the person in possession of the

ownership document;

6)         the date the vehicle was received by the dealer;

7)         the owner's full name, address, phone number, and driver's

license number. If the owner is a natural person and does not have a driver's

license, then date of birth must be given;

8)         the dealer's name, address and Illinois dealer's license

number;

9)         A heading that contains the word "CONSIGNMENT" all

in capital letters at least one-eighth (⅛) of an inch in height;

10)         the specific terms of the consignment as agreed to by the

parties;

11)         any other information the parties deem necessary;

12)         The signature of the owner and the dealer or his authorized

agent affirming that the information contained in the letter of consignment is

true and is true and correct and that the ownership documents agree with a

physical inspection of the vehicle.

d)         Any transaction to which this Section applies must also be

reflected in the records required to be kept by the dealer in accordance with

Section 5-401 of the Illinois Vehicle Code (Ill. Rev. Stat. 1983, ch. 95½, par.

5-401).

e)         Noncompliance with this Section shall be deemed a violation of

Section 5-401(b) of the Illinois Vehicle Code (Ill. Rev. Stat. 1983, ch. 95½,

par. 5-401(b)).