(1)

(a) If the applicant for a certificate of title to a motor vehicle is unable to provide the director or the authorized agent with a certificate of title duly transferred to the applicant or other evidence of ownership that satisfies the director that the applicant owns the vehicle, the director may issue a rebuilder's title for a motor vehicle valued principally because of the vehicle's early date of manufacture, design, or historical interest or valued as a collector's item if:

(I) The motor vehicle is not roadworthy;

(II) The motor vehicle is at least twenty-five years old;

(III) The components of the motor vehicle include at least a rolling chassis;

(IV) The application contains or is accompanied by a statement that complies with paragraph (b) of this subsection (1);

(V) The applicant obtains a certified vehicle identification number inspection; and

(VI) The applicant provides surety that complies with subsection (3) of this section.

(b) The statement required by subparagraph (IV) of paragraph (a) of this subsection (1) must contain an account of the facts by which the applicant acquired ownership of the vehicle, the source of the title to the vehicle, and such other information as the director may require. The statement must contain a written declaration that it is made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S.

(2) If a motor vehicle titled under this section is later made roadworthy, the department shall issue to an applicant a standard certificate of title if the applicant:

(a) Obtains a certified vehicle identification number inspection; and

(b) Furnishes a bond under subsection (3) of this section.

(3)

(a) To convert a rebuilder's title to a standard certificate of title, the applicant shall furnish evidence of a savings account, deposit, or certificate of deposit meeting the requirements of section 11-35-101, C.R.S., or a good and sufficient bond with a corporate surety. The account, deposit, certificate, or bond must be in an amount fixed by the director, but not less than twice the reasonable value of the vehicle, determined as of the time of application. The applicant and the applicant's surety shall hold harmless any person who suffers loss or damage by reason of the filing of a certificate of title under this section.

(b) If a person suffers loss or damage by reason of the filing of a certificate of title under this section, the person has a right of action against the applicant and the surety on the applicant's bond, against either of whom the person damaged may proceed independently of the other.

(4)

(a) A person shall not drive a motor vehicle titled under this section on the highways until it complies with subsection (5) of this section.

(b) The department or its authorized agent shall not classify a vehicle issued a title under this section as a salvage vehicle.

(5)

(a) If the motor vehicle's frame and body identification numbers do not match the manufacturer's numbering system as being originally mated or if the motor vehicle is reconstructed from salvage parts or other motor vehicles or reproduction parts, an application for title using subsection (1) or (2) of this section must include evidence of ownership of the parts, other motor vehicles, or reproduction components used in the reconstruction. If the evidence is not acceptable to the director, the director shall reject the application for certificate of title.

(b) The evidence required by paragraph (a) of this subsection (5) must include or be accompanied by an affidavit stating the facts concerning the reconstruction and an affidavit of physical inspection that includes a computer check of the state and national compilations of wanted and stolen vehicles.

(c) Before issuing a certificate of title under paragraph (a) of this subsection (5), the department shall issue a special vehicle identification number to the vehicle.