A. The Commissioner may accept certificates of titles for salvage vehicles or other documents deemed appropriate by the Department issued by other states indicating a vehicle has been declared salvage, and shall carry forward all appropriate brands or indicators. If the vehicle has not been rebuilt and the requirements of § 46.2-1605 have not been met, the Department shall issue a salvage certificate for the vehicle.

B. The Department shall issue a nonnegotiable title for a vehicle that has been rebuilt, titled, and registered out of state when (i) an application for title has been received for a vehicle for which the National Motor Vehicle Title Information System or the vehicle's current out-of-state title or other document proving ownership issued by another state indicates that a brand or indicator has been issued by another state identifying such vehicle as "junk," "for destruction," "for parts only," "not to be repaired," or other similar designation and (ii) documentation to show such repairs accompanies the application. Any negotiable security interests in the vehicle shall be shown on the face of the nonnegotiable title. The provisions of §§ 46.2-636, 46.2-636.1, 46.2-637, 46.2-638, 46.2-639, 46.2-640, 46.2-640.1, 46.2-641, 46.2-642, and 46.2-643 shall apply to nonnegotiable titles. However, no negotiable title shall ever be issued for such vehicle. At any time, the vehicle owner may declare a vehicle titled under this subsection to be nonrepairable, in accordance with § 46.2-1603.2.

A nonnegotiable title issued under this subsection shall not be transferred except as provided in §§ 46.2-633, 46.2-633.2, or 46.2-634 or when the vehicle is acquired by an insurance company as the result of the claims process. The transferee may not add as a co-owner an individual not entitled to possession of the vehicle under §§ 46.2-633, 46.2-633.2, or 46.2-634. If the vehicle will not be registered for use by the transferee, the transferee shall declare the vehicle to be nonrepairable by applying for a nonrepairable certificate in accordance with § 46.2-1603.2.

Any vehicle for which a nonnegotiable title has been issued pursuant to this section may be registered for use on the highways in the Commonwealth.

1979, c. 401, § 46.1-550.11; 1981, c. 9; 1989, c. 727; 1992, c. 148; 2017, c. 277.