§ 20‑63.01. Bondsrequired for commission contractors.
(a) A guaranty bond isrequired for each commission contractor that is not a governmental subdivisionof this State that is granted a contract to issue license plates or conductbusiness pursuant to G.S. 20‑63. Provided, however, a commissioncontractor that is unable to secure a bond may, with the consent of theDivision, provide an alternative to a guaranty bond, as provided in subsection(c) of this section.
The Division may revoke, withcause, a contract with a commission contractor that fails to maintain a bond oran alternative to a bond, pursuant to this section.
(b) (1) Whenapplication is made for a contract or contract renewal, the applicant shallfile a guaranty bond with the clerk of the superior court and/or the registerof deeds of the county in which the commission contractor will be located. Thebond shall be in favor of the Division. The bond shall be executed by theapplicant as principal and by a bonding company authorized to do business inthis State. The bond shall be conditioned to provide indemnification to theDivision for a loss of revenue for any reason, including bankruptcy, employeeembezzlement or theft, foreclosure, or ceasing to operate.
(2) The bond shall be inan amount determined by the Division to be adequate to provide indemnificationto the Division under the terms of the bond. The bond amount shall be at leastone hundred thousand dollars ($100,000).
(3) The bond shallremain in force and effect until cancelled by the guarantor. The guarantor maycancel the bond upon 30 days' notice to the Division. Cancellation of the bondshall not affect any liability incurred or accrued prior to the termination ofthe notice period.
(4) The Division may beable to negotiate bonds for contractors who qualify for bonds as a group underfavorable rates or circumstances. If so, the Division may require thosecontractors who can qualify for the group bond to obtain their bond as part ofa group of contractors. The Division may deduct the premiums for any bonds itmay be able to negotiate at group rates from the commissioned contractors'compensation.
(c) An applicant thatis unable to secure a bond may seek a waiver of the guaranty bond from theDivision and approval of one of the guaranty bond alternatives set forth inthis subsection. With the approval of the Division, an applicant may file withthe clerk of the superior court and/or the register of deeds of the county inwhich the commission contractor will be located, in lieu of a bond:
(1) An assignment of asavings account in an amount equal to the bond required (i) which is in a formacceptable to the Division; (ii) which is executed by the applicant; (iii)which is executed by a state or federal savings and loan association, state bank,or national bank that is doing business in North Carolina and whose accountsare insured by a federal depositors corporation; and (iv) for which access tothe account in favor of the State of North Carolina is subject to the sameconditions as for a bond in subsection (b) of this section.
(2) A certificate ofdeposit (i) which is executed by a state or federal savings and loanassociation, state bank, or national bank which is doing business in NorthCarolina and whose accounts are insured by a federal depositors corporation;(ii) which is either payable to the State of North Carolina, unrestrictivelyendorsed to the Division of Motor Vehicles; in the case of a negotiablecertificate of deposit, is unrestrictively endorsed to the Division of MotorVehicles; or in the case of a nonnegotiable certificate of deposit, is assignedto the Division of Motor Vehicles in a form satisfactory to the Division; and(iii) for which access to the certificate of deposit in favor of the State ofNorth Carolina is subject to the same conditions as for a bond in subsection(b) of this section. (2007‑488, s. 1.)
§ 20‑63.01. Bondsrequired for commission contractors.
(a) A guaranty bond isrequired for each commission contractor that is not a governmental subdivisionof this State that is granted a contract to issue license plates or conductbusiness pursuant to G.S. 20‑63. Provided, however, a commissioncontractor that is unable to secure a bond may, with the consent of theDivision, provide an alternative to a guaranty bond, as provided in subsection(c) of this section.
The Division may revoke, withcause, a contract with a commission contractor that fails to maintain a bond oran alternative to a bond, pursuant to this section.
(b) (1) Whenapplication is made for a contract or contract renewal, the applicant shallfile a guaranty bond with the clerk of the superior court and/or the registerof deeds of the county in which the commission contractor will be located. Thebond shall be in favor of the Division. The bond shall be executed by theapplicant as principal and by a bonding company authorized to do business inthis State. The bond shall be conditioned to provide indemnification to theDivision for a loss of revenue for any reason, including bankruptcy, employeeembezzlement or theft, foreclosure, or ceasing to operate.
(2) The bond shall be inan amount determined by the Division to be adequate to provide indemnificationto the Division under the terms of the bond. The bond amount shall be at leastone hundred thousand dollars ($100,000).
(3) The bond shallremain in force and effect until cancelled by the guarantor. The guarantor maycancel the bond upon 30 days' notice to the Division. Cancellation of the bondshall not affect any liability incurred or accrued prior to the termination ofthe notice period.
(4) The Division may beable to negotiate bonds for contractors who qualify for bonds as a group underfavorable rates or circumstances. If so, the Division may require thosecontractors who can qualify for the group bond to obtain their bond as part ofa group of contractors. The Division may deduct the premiums for any bonds itmay be able to negotiate at group rates from the commissioned contractors'compensation.
(c) An applicant thatis unable to secure a bond may seek a waiver of the guaranty bond from theDivision and approval of one of the guaranty bond alternatives set forth inthis subsection. With the approval of the Division, an applicant may file withthe clerk of the superior court and/or the register of deeds of the county inwhich the commission contractor will be located, in lieu of a bond:
(1) An assignment of asavings account in an amount equal to the bond required (i) which is in a formacceptable to the Division; (ii) which is executed by the applicant; (iii)which is executed by a state or federal savings and loan association, state bank,or national bank that is doing business in North Carolina and whose accountsare insured by a federal depositors corporation; and (iv) for which access tothe account in favor of the State of North Carolina is subject to the sameconditions as for a bond in subsection (b) of this section.
(2) A certificate ofdeposit (i) which is executed by a state or federal savings and loanassociation, state bank, or national bank which is doing business in NorthCarolina and whose accounts are insured by a federal depositors corporation;(ii) which is either payable to the State of North Carolina, unrestrictivelyendorsed to the Division of Motor Vehicles; in the case of a negotiablecertificate of deposit, is unrestrictively endorsed to the Division of MotorVehicles; or in the case of a nonnegotiable certificate of deposit, is assignedto the Division of Motor Vehicles in a form satisfactory to the Division; and(iii) for which access to the certificate of deposit in favor of the State ofNorth Carolina is subject to the same conditions as for a bond in subsection(b) of this section. (2007‑488, s. 1.)
§ 20‑63.01. Bondsrequired for commission contractors.
(a) A guaranty bond isrequired for each commission contractor that is not a governmental subdivisionof this State that is granted a contract to issue license plates or conductbusiness pursuant to G.S. 20‑63. Provided, however, a commissioncontractor that is unable to secure a bond may, with the consent of theDivision, provide an alternative to a guaranty bond, as provided in subsection(c) of this section.
The Division may revoke, withcause, a contract with a commission contractor that fails to maintain a bond oran alternative to a bond, pursuant to this section.
(b) (1) Whenapplication is made for a contract or contract renewal, the applicant shallfile a guaranty bond with the clerk of the superior court and/or the registerof deeds of the county in which the commission contractor will be located. Thebond shall be in favor of the Division. The bond shall be executed by theapplicant as principal and by a bonding company authorized to do business inthis State. The bond shall be conditioned to provide indemnification to theDivision for a loss of revenue for any reason, including bankruptcy, employeeembezzlement or theft, foreclosure, or ceasing to operate.
(2) The bond shall be inan amount determined by the Division to be adequate to provide indemnificationto the Division under the terms of the bond. The bond amount shall be at leastone hundred thousand dollars ($100,000).
(3) The bond shallremain in force and effect until cancelled by the guarantor. The guarantor maycancel the bond upon 30 days' notice to the Division. Cancellation of the bondshall not affect any liability incurred or accrued prior to the termination ofthe notice period.
(4) The Division may beable to negotiate bonds for contractors who qualify for bonds as a group underfavorable rates or circumstances. If so, the Division may require thosecontractors who can qualify for the group bond to obtain their bond as part ofa group of contractors. The Division may deduct the premiums for any bonds itmay be able to negotiate at group rates from the commissioned contractors'compensation.
(c) An applicant thatis unable to secure a bond may seek a waiver of the guaranty bond from theDivision and approval of one of the guaranty bond alternatives set forth inthis subsection. With the approval of the Division, an applicant may file withthe clerk of the superior court and/or the register of deeds of the county inwhich the commission contractor will be located, in lieu of a bond:
(1) An assignment of asavings account in an amount equal to the bond required (i) which is in a formacceptable to the Division; (ii) which is executed by the applicant; (iii)which is executed by a state or federal savings and loan association, state bank,or national bank that is doing business in North Carolina and whose accountsare insured by a federal depositors corporation; and (iv) for which access tothe account in favor of the State of North Carolina is subject to the sameconditions as for a bond in subsection (b) of this section.
(2) A certificate ofdeposit (i) which is executed by a state or federal savings and loanassociation, state bank, or national bank which is doing business in NorthCarolina and whose accounts are insured by a federal depositors corporation;(ii) which is either payable to the State of North Carolina, unrestrictivelyendorsed to the Division of Motor Vehicles; in the case of a negotiablecertificate of deposit, is unrestrictively endorsed to the Division of MotorVehicles; or in the case of a nonnegotiable certificate of deposit, is assignedto the Division of Motor Vehicles in a form satisfactory to the Division; and(iii) for which access to the certificate of deposit in favor of the State ofNorth Carolina is subject to the same conditions as for a bond in subsection(b) of this section. (2007‑488, s. 1.)
