This bill establishes new regulations for motor vehicle dealers regarding the pay-off of trade-in vehicles and the release of vehicle titles. It mandates that dealers must remit the full amount of any remaining loan on a trade-in vehicle to the secured party within 15 days of taking possession. Dealers are also required to provide proof of this payment to the customer upon request. Violations of these provisions can result in penalties of up to $1,000 for the first offense and up to $2,000 for subsequent offenses, along with any late fees incurred by the customer due to the dealer's failure to pay on time. Additionally, the bill amends existing laws to require secured parties to release the title within 15 days of receiving payment, with specific provisions for payments made by non-certified checks.

Furthermore, the bill introduces stricter rules regarding levies on motor vehicles. It invalidates any constructive levy unless the creditor takes actual possession of the vehicle within 30 days of notifying the Chief Administrator of the Motor Vehicle Commission. This change protects subsequent good faith purchasers from financial liability for levies on vehicles that are not in the creditor's actual possession. The Chief Administrator is also tasked with removing title transfer restrictions on vehicles that have been legally seized but not physically taken within the specified timeframe. Overall, the bill aims to enhance consumer protection and streamline the process of vehicle title transfers in New Jersey.