§437-18  Bond of broker.  (a)  Each
broker receiving a license shall give to the motor vehicle industry licensing
board and keep in force a bond or bonds in the penal sum totaling not less than
$200,000.



(b)  More than one bond may be furnished by the
same applicant, provided they aggregate the full amount prescribed by this
section.



(c)  If the applicant maintains an established
place of business in a county which is used, or will be used, for the purpose
of selling, displaying, or offering to negotiate for the purchase of motor
vehicles, the market value of which, over and above all liens, charges, and
encumbrances thereon, is equal to or greater than ninety per cent of the amount
of bond required by this section, and the financial condition of the applicant
is such that, in the judgment of the board, the excess over ten per cent of the
bond may be waived without unduly jeopardizing the rights and interests of
present and prospective claimants against the applicant, then the amount of the
bond may be reduced at the discretion of the board.



(d)  The bond shall be subject to the following
conditions:



(1)  That the broker will faithfully and truly comply
with all the valid provisions of this chapter as the same now are or may
hereafter be amended, and with any rule adopted by the board pursuant to this
chapter;



(2)  That the broker will not be guilty of fraud,
misrepresentation, or other improper business conduct in connection with the
selling, purchasing, negotiating for purchase, or otherwise dealing with motor
vehicles or any other property related thereto, and will satisfy all judgments
rendered against the broker based in whole or in part upon representations or
warranties made in connection with any retail sale or negotiation for the
purchase of a motor vehicle; and



(3)  That the broker will protect the treasurer of the
county and any purchaser of any vehicle or any person acquiring any lien
thereon or successor in interest of any such person against any loss on account
of any defect in or undisclosed encumbrance upon the title of any motor
vehicle, registered by the treasurer in reliance upon any certificate,
affidavit, or other representation of the dealer, or registration or transfer
of registration procured by the broker.



(e)  Suit on bond.  The director of commerce
and consumer affairs, or any person who has been or claims to have been injured
by the breach of the conditions, shall have the right of action to recover on
any such bond, plus a reasonable attorney's fee incurred to secure the recovery
under the bond; provided that the aggregate liability of the surety or sureties
to all such persons shall in no event exceed the amount of the bond; and
provided further that any award of attorney's fees shall be approved by the
court and no other attorney's fees shall be permitted from the bond proceeds. 
Nothing in this section or chapter shall be deemed to prohibit or prevent an
independent action against the broker and any other person from being joined or
consolidated with an action on the bond, and the recovery of a larger amount
than the amount of the bond founded upon any other cause or causes or action so
joined or consolidated. [L 1967, c 113, §1(C); HRS §437-18; am L 1969, c 263,
§1(22); am L 1985, c 102, §2; am L 1992, c 153, §5; am L Sp 1993, c 8, §§24 and
58]