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Article: N.Y. dealer liable for delay in filing of lien. (New Country Dodge; TCT Federal Credit Union)
- Article from:
- Automotive News
- Article date:
- March 3, 1997
- Author:
CopyrightCOPYRIGHT 1997 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In a costly cautionary lesson for dealers, a New York appellate court has found a Saratoga Springs, N.Y., dealership liable to a lender for failing to record a lien before the purchasers of a new vehicle went bankrupt.
It is the first time an appellate court in the state put a dealership on the hook for an error that undermined the lender's security interest in a financed car, according to a lawyer for the lender, TCT Federal Credit Union in Clifton Park, N.Y.
The decision means New Country Dodge must pay more than $17,500 to TCT, which financed the 1992 purchase of a Dodge Dakota by Cheryl and Stephen McElhiney.
In the long run, the appellate ruling ...