14-012 Code Vt. R. 14-050-012-X - MOTOR VEHICLE DEALER BOND

I DEFINITIONS

As used in these rules, the following definitions shall apply:

A. "New car dealer" shall have the same meaning as in 23 V.S.A. § 4(8);

B. "Used car dealer" shall have the same meaning as in 23 V.S.A. § 4(8);

C. "Required period" shall mean the registration period established any 23 V.S.A. § 452 for which an application is being made plus one year.

D. "Commissioner" shall mean the Commissioner of Motor Vehicles.

II DEALER REGISTRATION

A. A new or used car dealer registration shall not be issued unless the dealer has provided the Commissioner with a surety bond, letter of credit or certificate of deposit issued by an entity authorized to do business in Vermont in an amount set forth in subsection B of this section.

B. The amounts shall be based upon the dealer's sales in the year immediately prior to the year for which the application is being made, as follows:

1. Less than 25 vehicles	--	$ 5,000.00
2. 25 to 100 vehicles	--	$ 7,500.00
3. 101 to 250 vehicles	--	$ 10,000.00
4. 251 or more vehicles	--	$ 15,000.00

C. If the applicant was not registered as a dealer in the year immediately prior to the year for which the application is being made, the amount shall be $ 15,000.00.

III FORMS REQUIREMENTS

A. Bonds

1. Forms shall be available upon request from the Commissioner.

2. Only such forms or identical forms independently produced shall be used.

B. Certificates of Deposit

1. Certificates shall be in the name of the dealer and assigned by the dealer to the Commissioner.

2. Certificates shall be payable to the order of the dealer or assigns.

3. Certificates shall be re-assigned by the Commissioner to the dealer at the end of the required period.

C. Letters of Credit

1. Letters of Credit shall be irrevocable for the required period.

2. The Commissioner shall be the beneficiary of such Letters of Credit.

IV PURPOSE/LIABILITY

A. Such bonds, certificates of deposit or letters of credit shall be available to provide the indemnity required by 23 V.S.A. § 453(g).

B. The liability of the surety or claim against a certificate of deposit or letter of credit shall be limited in accordance with the provisions of 23 V.S.A. § 453(g).

Notes

14-012 Code Vt. R. 14-050-012-X

Effective Date: March 19, 1989 (SOS Rule Log #89-3)

Statutory Authority: 23 V.S.A.C. 7, § 453