(i) Vehicles valued under five thousand dollars ($5,000) shall require a Statement of Facts, form REG 256 (REV. 1/2007) with Section G completed to explain why the title cannot be obtained and Section H signed and dated to certify or declare under penalty of perjury that the described vehicle identified in Section G is a total loss salvage and to request that the department issue a salvage certificate.

(ii) Vehicles valued at five thousand dollars ($5,000) and above shall require a surety bond pursuant to Section 4157 of the Vehicle Code. A surety bond is also required when settlement is made to the legal owner of a vehicle without the release of the registered owner unless repossession documentation is attached.

(iii) EXCEPTION: Following a total loss settlement, an insurance company, an occupational licensee of the department authorized by an insurance company or a salvage pool authorized by an insurance company, that has completed the requirements of Section 11515 of the Vehicle Code and completed the Unobtainable Title Certification for Issuance of a Salvage or Nonrepairable Certificate, form REG 492 (REV 2/2009), which is hereby incorporated by reference, shall submit the REG 492 form, along with the REG 488C form to request that the department issue a salvage certificate without a certificate of ownership or other appropriate evidence of ownership document(s).