If a dealer buys a vehicle, manufactured home or mobile home and holds it for resale and procures the certificate of title from the owner or the lienholder within ten (10) days after delivery to him of the vehicle, manufactured home or mobile home, he need not send the certificate to the State Tax Commission. However, upon transferring the vehicle, manufactured home or mobile home to another person other than by the creation of a security interest, he shall promptly execute the assignment and warranty of title by a dealer, showing the names and addresses of the transferee and of any lienholder holding a security interest created or reserved at the time of the resale and the date of his security agreement, in the spaces provided therefor on the certificate or as the State Tax Commission prescribes, and deliver the certificate to a designated agent with the transferee’s application for a new certificate.

Every dealer shall maintain for five (5) years a record in the form the State Tax Commission prescribes of every vehicle, manufactured home or mobile home bought, sold or exchanged by him or received by him for sale or exchange, which shall be open to inspection by a representative of the State Tax Commission or patrol or peace officer during reasonable business hours.

Any person found to be in possession of a vehicle, manufactured home or mobile home with an improperly assigned title which fails to identify the transferee shall immediately establish ownership of the vehicle, manufactured home or mobile home, register the vehicle, manufactured home or mobile home and pay the required tax and penalty. The vehicle, manufactured home or mobile home shall be impounded by state or local law enforcement officials until such time as the person in possession can prove ownership or until the rightful owner is located. In the event the rightful owner cannot be established within thirty (30) days, the vehicle, manufactured home or mobile home shall be deemed abandoned and shall be disposed of as provided by law.

An insurance company which obtains title to a motor vehicle as a result of paying a total loss claim resulting from collision, fire, flood or other cause shall obtain a salvage certificate of title in its name for such vehicle from the State Tax Commission. The provisions of this subsection shall not apply to vehicles ten (10) years old or older with a value of One Thousand Five Hundred Dollars ($1,500.00) or less, or to vehicles with damage which requires the replacement of five (5) or fewer minor components, which such insurer may dispose of by endorsing change in ownership on the certificate of title using space reserved for reassignment of title by licensed dealer without obtaining a salvage certificate of title.