32-6B-36. Dealer's car auction agency--Vehicles acceptable for sale--Permitted purchasers--Unauthorized sale a misdemeanor. Any auction agency operating under the provisions of this chapter may accept for sale at its option vehicles which are owned by vehicle dealers regularly licensed in either this or some other state, or by the following entities if the vehicle is owned and titled by the entity and acquired incident to its regular business:

(1) Any regulated lender as defined in § 54-3-14 or any financing institution licensed pursuant to chapter 54-4;

(2) Any financial institution chartered or licensed in any other jurisdiction. However, such entity is not required to have a title in its name if the entity provides a title in the name of the customer and documentation as required by the department to substantiate a repossession transaction; or

(3) Any insurance company authorized to do business in either this state or some other state.

An auction agency may also accept from any manufacturer any vehicle that is owned by the manufacturer and that has a manufacturer's certificate of origin or a valid title. Any vehicle with a manufacturer's certificate of origin sold for a manufacturer may only be offered to the manufacturer's franchised dealers with the same line vehicle make.

Any vehicle dealer, regularly licensed by this or some other state, may purchase any vehicle from an auction agency, except as otherwise prohibited by this section. Any auction agency that accepts for sale any vehicle not authorized by this section is guilty of a Class 1 misdemeanor.

Source: SL 1986, ch 250, § 37; SL 1997, ch 184, § 1; SL 2001, ch 168, § 1; SL 2007, ch 177, § 1; SL 2015, ch 157, § 21.