§ 46.2-1992.20. Bonding requirements for applicants for license.
Every applicant for an original, second year renewal, and third year renewaltrailer dealer's license shall obtain and file with the Commissioner a bondin the amount of $25,000. However, no dealer shall be required to obtain morethan one $25,000 bond for all licenses held under this subtitle. Any dealerwho is licensed under Chapter 15 of this title and who obtains a trailerdealer license under this chapter, shall be exempt from the bond requirementsset out in this section. In addition, any person who purchases a trailer froma dealer who is licensed under Chapter 15 of this title, shall have access tothe Motor Vehicle Transaction Recovery Fund as prescribed in Article 3.1 (§46.2-1527.1 et seq.) of Chapter 15 of this title. The bond shall come from acorporate surety licensed to do business in the Commonwealth and approved bythe Attorney General. The bond shall be conditioned on a statement by theapplicant that the applicant will not practice fraud, make any fraudulentrepresentation, or violate any provision of this chapter in the conduct ofthe applicant's business. The Commissioner may, without holding a hearing,suspend the dealer's license during the period that the dealer does not havea sufficient bond on file.
If a person suffers any of the following: (i) loss or damage in connectionwith the purchase of a trailer by reason of fraud practiced on him orfraudulent representation made to him by a licensed trailer dealer or one ofthe dealer's salespersons acting within his scope of employment; (ii) loss ordamage by reason of the violation by a dealer or salesperson of any provisionof this chapter in connection with the purchase of a trailer; or (iii) lossor damage resulting from a breach of an extended service contract as definedby § 59.1-435, and entered into on or after the effective date of this act,that person shall have a claim against the dealer and the dealer's bond, andmay recover such damages as may be awarded to such person by final judgmentof a court of competent jurisdiction against the dealer as a proximate resultof such loss or damage up to, but not exceeding, the amount of the bond, fromsuch surety, who shall be subrogated to the rights of such person against thedealer or salesperson. The liability of such surety shall be limited toactual damages, and shall not include any punitive damages or attorneys' feesassessed against the dealer or salesperson.
The dealer's surety shall notify the Department when a claim is made againsta dealer's bond, when a claim is paid and when the bond is canceled. 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 canceled as tofuture liability by the dealer's surety upon thirty days' notice to theDepartment.
§ 46.2-1992.20. Bonding requirements for applicants for license.
Every applicant for an original, second year renewal, and third year renewaltrailer dealer's license shall obtain and file with the Commissioner a bondin the amount of $25,000. However, no dealer shall be required to obtain morethan one $25,000 bond for all licenses held under this subtitle. Any dealerwho is licensed under Chapter 15 of this title and who obtains a trailerdealer license under this chapter, shall be exempt from the bond requirementsset out in this section. In addition, any person who purchases a trailer froma dealer who is licensed under Chapter 15 of this title, shall have access tothe Motor Vehicle Transaction Recovery Fund as prescribed in Article 3.1 (§46.2-1527.1 et seq.) of Chapter 15 of this title. The bond shall come from acorporate surety licensed to do business in the Commonwealth and approved bythe Attorney General. The bond shall be conditioned on a statement by theapplicant that the applicant will not practice fraud, make any fraudulentrepresentation, or violate any provision of this chapter in the conduct ofthe applicant's business. The Commissioner may, without holding a hearing,suspend the dealer's license during the period that the dealer does not havea sufficient bond on file.
If a person suffers any of the following: (i) loss or damage in connectionwith the purchase of a trailer by reason of fraud practiced on him orfraudulent representation made to him by a licensed trailer dealer or one ofthe dealer's salespersons acting within his scope of employment; (ii) loss ordamage by reason of the violation by a dealer or salesperson of any provisionof this chapter in connection with the purchase of a trailer; or (iii) lossor damage resulting from a breach of an extended service contract as definedby § 59.1-435, and entered into on or after the effective date of this act,that person shall have a claim against the dealer and the dealer's bond, andmay recover such damages as may be awarded to such person by final judgmentof a court of competent jurisdiction against the dealer as a proximate resultof such loss or damage up to, but not exceeding, the amount of the bond, fromsuch surety, who shall be subrogated to the rights of such person against thedealer or salesperson. The liability of such surety shall be limited toactual damages, and shall not include any punitive damages or attorneys' feesassessed against the dealer or salesperson.
The dealer's surety shall notify the Department when a claim is made againsta dealer's bond, when a claim is paid and when the bond is canceled. 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 canceled as tofuture liability by the dealer's surety upon thirty days' notice to theDepartment.
§ 46.2-1992.20. Bonding requirements for applicants for license.
Every applicant for an original, second year renewal, and third year renewaltrailer dealer's license shall obtain and file with the Commissioner a bondin the amount of $25,000. However, no dealer shall be required to obtain morethan one $25,000 bond for all licenses held under this subtitle. Any dealerwho is licensed under Chapter 15 of this title and who obtains a trailerdealer license under this chapter, shall be exempt from the bond requirementsset out in this section. In addition, any person who purchases a trailer froma dealer who is licensed under Chapter 15 of this title, shall have access tothe Motor Vehicle Transaction Recovery Fund as prescribed in Article 3.1 (§46.2-1527.1 et seq.) of Chapter 15 of this title. The bond shall come from acorporate surety licensed to do business in the Commonwealth and approved bythe Attorney General. The bond shall be conditioned on a statement by theapplicant that the applicant will not practice fraud, make any fraudulentrepresentation, or violate any provision of this chapter in the conduct ofthe applicant's business. The Commissioner may, without holding a hearing,suspend the dealer's license during the period that the dealer does not havea sufficient bond on file.
If a person suffers any of the following: (i) loss or damage in connectionwith the purchase of a trailer by reason of fraud practiced on him orfraudulent representation made to him by a licensed trailer dealer or one ofthe dealer's salespersons acting within his scope of employment; (ii) loss ordamage by reason of the violation by a dealer or salesperson of any provisionof this chapter in connection with the purchase of a trailer; or (iii) lossor damage resulting from a breach of an extended service contract as definedby § 59.1-435, and entered into on or after the effective date of this act,that person shall have a claim against the dealer and the dealer's bond, andmay recover such damages as may be awarded to such person by final judgmentof a court of competent jurisdiction against the dealer as a proximate resultof such loss or damage up to, but not exceeding, the amount of the bond, fromsuch surety, who shall be subrogated to the rights of such person against thedealer or salesperson. The liability of such surety shall be limited toactual damages, and shall not include any punitive damages or attorneys' feesassessed against the dealer or salesperson.
The dealer's surety shall notify the Department when a claim is made againsta dealer's bond, when a claim is paid and when the bond is canceled. 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 canceled as tofuture liability by the dealer's surety upon thirty days' notice to theDepartment.
