1. The DRMO can transfer whole vehicles to individuals or local government. A
form 97 title is generated. If the transferee is a local govt or agency, they
can sell the veh at auction, etc., AS LONG AS THE SALE IS WITHIN LOCAL POLICY
AND THE VEH DOES NOT REQUIRE DEMIL. Individual who have purchased vehs
through DRMO and have a form 97 may do as they please with them.
2. Occasionally, local govt agencies will recieve vehs on loan or transfer
that require demil if disposed of. These may include Hum Vees and armored
vehicles. They sometimes forget the restrictions on transfer, and will
auction them off with thier regular surplus vehicles. This is where I believe
the feds will say that the vehs were "illegally" obtained, even though the
collector bought the veh fairly, and has a Bill of Sale from the local gov't
agency. There will generally be no form 97 available in these cases.
3. As you all know, some vehs are bought demilled (cut up) from DRMO sales as
parts and reconstructed by collectors. Since these vehs were not sold whole,
there is no form 97, and could be considered contraband due to the demil
regulations.
4. As a general rule, if you have a form 97 you are safe. If you have a state
title you should be fairly safe, as most states will not title surplus US
MV's without a form 97, or other documentation including a title bond.
Some of you have more experience in this area than I do. Let me know what you
think.
Byron