Current Status Introducing Body:Senate Bill Number:1215 Primary Sponsor:Bryan Committee Number:15 Type of Legislation:GB Subject:Motor vehicle dealer, new bond or continuation certificate Residing Body:Senate Current Committee:Transportation Companion Bill Number:4223 Computer Document Number:DKA/3579.AL Introduced Date:Jan 22, 1992 Last History Body:Senate Last History Date:Jan 22, 1992 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Bryan Mullinax O'Dell Type of Legislation:General Bill
Bill Body Date Action Description CMN
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1215 Senate Jan 22, 1992 Introduced, read first time, 15
referred to Committee
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TO AMEND SECTION 56-15-320, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO WHOLESALE OR DEALER LICENSES, SO AS TO ELIMINATE THE NECESSITY OF A DEALER OR WHOLESALER SUBMITTING A NEW BOND OR PROPER CONTINUATION CERTIFICATE EACH YEAR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Subsection (2) of Section 56-15-320 of the 1976 Code is amended to read:
"(2) Each An applicant for licensure as a dealer or wholesaler must furnish a surety bond in the penal amount of fifteen thousand dollars on a form to be prescribed by the director of the Motor Vehicle Division of the department. The bond must be given to the department and executed by the applicant, as principal, and by a corporate surety company authorized to do business in this State, as surety. The bond must be conditioned upon the applicant or licensee complying with the provisions of the statutes applicable to the license and as indemnification for any loss or damage suffered by an owner of a motor vehicle, or his legal representative, by reason of any fraud practiced or fraudulent representation made in connection with the sale or transfer of a motor vehicle by a licensed dealer or wholesaler or the dealer's or wholesaler's agent acting for the dealer or wholesaler or within the scope of employment of the agent or any loss or damage suffered by reason of the violation by the dealer or wholesaler or his agent, of any of the provisions of this chapter. An owner or his legal representative, who suffers the loss or damage has a right of action against the dealer or wholesaler and against the dealer's or wholesaler's surety upon the bond and may recover damages as provided in this chapter. A new bond or a proper continuation certificate must be delivered to the Department annually before the license is renewed. However, regardless of the number of years a bond remains in effect, the aggregate liability of the surety for any and all claims is limited to fifteen thousand dollars on each bond and to the amount of the actual loss incurred. The surety has the right to terminate its liability under the bond by giving the department thirty days' written notice of its intent to cancel the bond. The cancellation does not affect any liability incurred or accrued prior to before the cancellation."
SECTION 2. This act takes effect upon approval by the Governor.