Here's my interpretation on the legalities of the situation. However, I may be wrong and I am happy to be corrected on this.
INMHO - legally speaking, its vehicle conversion.
However, if one puts aside any legal problems, there's one biggie your friend will need to consider.
Any time you take a bike for a warrant, the person assessing the vehicle should check the VIN plate.
So your friend would be best advised to swap the VIN plate over.
I've had many assessors check the VIN plate, never had one check the serial number.
Is there something wrong with the frame on the old bike?
Legally, you can take everything off the new bike, and put it on the old frame, and it's not vehicle conversion, as the VIN title resides only on the frame.
However, if you're just riding it home, changing the plates should be okay, as long as you don't speed...
And I to my motorcycle parked like the soul of the junkyard. Restored, a bicycle fleshed with power, and tore off. Up Highway 106 continually drunk on the wind in my mouth. Wringing the handlebar for speed, wild to be wreckage forever.
- James Dickey, Cherrylog Road.
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