[3] For repossession-based impoundment, the lending agency or its assignee is granted authority by either a court order, or in some cases, by contract law.
In some cases, if the owner or operator intervenes during the tow procedure, he may be able to stop it, often by paying the fine on the spot via a portable credit card reader.
The lot may be exclusively for impoundments, or it may be a storage yard that also serves other functions, such as parking for an area site, or a vehicle repair shop.
In the case of serviceable vehicles, the towing company may offer this documentation in a packet known as the possessory lien papers, which can be used to obtain a new title.
Those auctioning the vehicles likely have no knowledge of its mechanical condition beyond the obvious (such as rust), and are generally exempt from providing warranties.
In April 2013, the Queensland Government approved amendments to the Police Powers and Responsibilities Act 2000,[5] regarding motor vehicle impoundment to improve road safety.
Vehicle impoundment is an option, or is mandatory, for a variety of offences,[6] among them exceeding a posted speed limit by at least 50 km/h and drunk-driving.
[8] In 2015, Sacramento attempted to pass legislation in consideration of homeless persons in high risk impoundment situations.
[9] The law could prevent a common practice of salvaging a homeless persons sleeping quarters for a profit of $50 which would be paid to the impound lot.