§ 46.2-1527.2. Bonding requirements for applicants for an original license.
Before the Board shall issue to an applicant an original license, theapplicant shall obtain and file with the Board a bond in the amount of$50,000. The bond shall come from a corporate surety licensed to do businessin the Commonwealth and approved by the Attorney General. The bond shall beconditioned on a statement by the applicant that the applicant will notpractice fraud, make any fraudulent representation, or violate any provisionof this chapter in the conduct of the applicant's business. The Board may,without holding a hearing, suspend the dealer's license during the periodthat the dealer does not have a sufficient bond on file.
If a person suffers any of the following: (i) loss or damage in connectionwith the purchase or lease of a motor vehicle by reason of fraud practiced onhim or fraudulent representation made to him by a licensed motor vehicledealer or one of the dealer's salespersons acting within his scope ofemployment, (ii) loss or damage by reason of the violation by a dealer orsalesperson of any provision of this chapter in connection with the purchaseor lease of a motor vehicle, or (iii) loss or damage resulting from a breachof an extended service contract entered into on or after the effective dateof this act, as defined by § 59.1-435, that person shall have a claim againstthe dealer and the dealer's bond, and may recover such damages as may beawarded to such person by final judgment of a court of competent jurisdictionagainst the dealer as a proximate result of such loss or damage up to but notexceeding the amount of the bond, from such surety, who shall be subrogatedto the rights of such person against the dealer or salesperson. The liabilityof such surety shall be limited to actual damages, and shall not include anypunitive damages or attorneys' fees assessed against the dealer orsalesperson.
In those cases in which a dealer's surety shall be liable pursuant to thissection, the surety shall be liable only for the first $50,000 in claimsagainst the dealer. Thereafter, the Fund shall be liable for the next $50,000in those cases in which the Fund itself may be liable. The aggregateliability of the dealer's surety to any and all persons, regardless of thenumber of claims made against the bond or the number of years the bondremains in force, shall in no event exceed $50,000.
The dealer's surety shall notify the Board when a claim is made against adealer's bond, when a claim is paid and when the bond is cancelled. Suchnotification shall include the amount of a claim and the circumstancessurrounding the claim. Notification of cancellation shall include theeffective date and reason for cancellation. The bond may be cancelled as tofuture liability by the dealer's surety upon thirty days' notice to the Board.
(1994, c. 478; 1995, cc. 767, 816; 1998, c. 325; 2001, c. 194; 2006, c. 172.)
§ 46.2-1527.2. Bonding requirements for applicants for an original license.
Before the Board shall issue to an applicant an original license, theapplicant shall obtain and file with the Board a bond in the amount of$50,000. The bond shall come from a corporate surety licensed to do businessin the Commonwealth and approved by the Attorney General. The bond shall beconditioned on a statement by the applicant that the applicant will notpractice fraud, make any fraudulent representation, or violate any provisionof this chapter in the conduct of the applicant's business. The Board may,without holding a hearing, suspend the dealer's license during the periodthat the dealer does not have a sufficient bond on file.
If a person suffers any of the following: (i) loss or damage in connectionwith the purchase or lease of a motor vehicle by reason of fraud practiced onhim or fraudulent representation made to him by a licensed motor vehicledealer or one of the dealer's salespersons acting within his scope ofemployment, (ii) loss or damage by reason of the violation by a dealer orsalesperson of any provision of this chapter in connection with the purchaseor lease of a motor vehicle, or (iii) loss or damage resulting from a breachof an extended service contract entered into on or after the effective dateof this act, as defined by § 59.1-435, that person shall have a claim againstthe dealer and the dealer's bond, and may recover such damages as may beawarded to such person by final judgment of a court of competent jurisdictionagainst the dealer as a proximate result of such loss or damage up to but notexceeding the amount of the bond, from such surety, who shall be subrogatedto the rights of such person against the dealer or salesperson. The liabilityof such surety shall be limited to actual damages, and shall not include anypunitive damages or attorneys' fees assessed against the dealer orsalesperson.
In those cases in which a dealer's surety shall be liable pursuant to thissection, the surety shall be liable only for the first $50,000 in claimsagainst the dealer. Thereafter, the Fund shall be liable for the next $50,000in those cases in which the Fund itself may be liable. The aggregateliability of the dealer's surety to any and all persons, regardless of thenumber of claims made against the bond or the number of years the bondremains in force, shall in no event exceed $50,000.
The dealer's surety shall notify the Board when a claim is made against adealer's bond, when a claim is paid and when the bond is cancelled. Suchnotification shall include the amount of a claim and the circumstancessurrounding the claim. Notification of cancellation shall include theeffective date and reason for cancellation. The bond may be cancelled as tofuture liability by the dealer's surety upon thirty days' notice to the Board.
(1994, c. 478; 1995, cc. 767, 816; 1998, c. 325; 2001, c. 194; 2006, c. 172.)
§ 46.2-1527.2. Bonding requirements for applicants for an original license.
Before the Board shall issue to an applicant an original license, theapplicant shall obtain and file with the Board a bond in the amount of$50,000. The bond shall come from a corporate surety licensed to do businessin the Commonwealth and approved by the Attorney General. The bond shall beconditioned on a statement by the applicant that the applicant will notpractice fraud, make any fraudulent representation, or violate any provisionof this chapter in the conduct of the applicant's business. The Board may,without holding a hearing, suspend the dealer's license during the periodthat the dealer does not have a sufficient bond on file.
If a person suffers any of the following: (i) loss or damage in connectionwith the purchase or lease of a motor vehicle by reason of fraud practiced onhim or fraudulent representation made to him by a licensed motor vehicledealer or one of the dealer's salespersons acting within his scope ofemployment, (ii) loss or damage by reason of the violation by a dealer orsalesperson of any provision of this chapter in connection with the purchaseor lease of a motor vehicle, or (iii) loss or damage resulting from a breachof an extended service contract entered into on or after the effective dateof this act, as defined by § 59.1-435, that person shall have a claim againstthe dealer and the dealer's bond, and may recover such damages as may beawarded to such person by final judgment of a court of competent jurisdictionagainst the dealer as a proximate result of such loss or damage up to but notexceeding the amount of the bond, from such surety, who shall be subrogatedto the rights of such person against the dealer or salesperson. The liabilityof such surety shall be limited to actual damages, and shall not include anypunitive damages or attorneys' fees assessed against the dealer orsalesperson.
In those cases in which a dealer's surety shall be liable pursuant to thissection, the surety shall be liable only for the first $50,000 in claimsagainst the dealer. Thereafter, the Fund shall be liable for the next $50,000in those cases in which the Fund itself may be liable. The aggregateliability of the dealer's surety to any and all persons, regardless of thenumber of claims made against the bond or the number of years the bondremains in force, shall in no event exceed $50,000.
The dealer's surety shall notify the Board when a claim is made against adealer's bond, when a claim is paid and when the bond is cancelled. Suchnotification shall include the amount of a claim and the circumstancessurrounding the claim. Notification of cancellation shall include theeffective date and reason for cancellation. The bond may be cancelled as tofuture liability by the dealer's surety upon thirty days' notice to the Board.
(1994, c. 478; 1995, cc. 767, 816; 1998, c. 325; 2001, c. 194; 2006, c. 172.)
