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32-6C-4 Bond required--Amount--Term--Continuation certificate--Notification of payment or cancella...
     32-6C-4.   Bond required--Amount--Term--Continuation certificate--Notification of payment or cancellation--Additional bond. Before any license may be issued, the applicant shall deliver to the department, a surety bond in the amount of five thousand dollars, executed by the applicant as principal and by a surety company qualified to do business in the state as surety. 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 breach of warranty as to freedom from liens. The bond shall be for the license period, and 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 and shall state the reason and the amount of the 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 record of this state, the dealer shall execute an additional bond for the amount necessary to maintain such security at the original level.

Source: SL 1987, ch 223, § 4; SL 2004, ch 207, § 2.


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