32-6B-7. Bond required--Amount--Term--Continuation certificate--Notification of payment or cancellation--Additional bond. Before any license is issued, the applicant shall deliver to the department a good and sufficient surety bond, executed by the applicant as principal and by a surety company qualified to do business in the state as surety. The bond shall be for an amount based upon the type of license applied for, as follows:

(1) Vehicle dealer's license--$25,000;

(2) Used vehicle dealer's license--$25,000;

(3) Motorcycle and off-road vehicle dealer's license--$5,000;

(4) Trailer dealer's license--$10,000 for trailers weighing more than three thousand pounds; or

(5) Emergency vehicle dealer's license--$10,000.

The bond shall be to the department and in favor of any customer who suffers any loss that may be occasioned by reason of the failure of title or by reason of any fraudulent misrepresentation or breaches of warranty as to freedom from liens. The bond shall be for the license period. A new bond or a proper continuation certificate shall be delivered to the department at the beginning of each license period. Any surety company that pays a claim against the bond of a licensee shall notify the department, in writing, that it has paid such a claim. Any surety company that cancels the bond of a licensee shall notify the department, in writing, of the cancellation, giving the reason for that cancellation. If a claim is made to the department against the bond, which claim is based upon a final judgment of a court of record of this state, the dealer shall execute an additional bond for the amount necessary to maintain the security at the original level.

Source: SL 1986, ch 250, § 8; SL 1989, ch 256, § 3; SL 1998, ch 175, § 4; SL 2004, ch 207, § 1; SL 2010, ch 156, § 2, eff. Mar. 9, 2010; SL 2016, ch 159, § 3.