Current Status Bill Number:309 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970204 Primary Sponsor:Wilson All Sponsors:Wilson Drafted Document Number:bbm\9108cm.97 Residing Body:Senate Current Committee:Transportation Committee 15 ST Subject:Motor vehicle dealer, wholesaler license plates; bond accompanying application, requirements
Body Date Action Description Com Leg Involved
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Senate 19970204 Introduced, read first time, 15 ST
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND SECTION 56-15-320, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF A WHOLESALER OR DEALER LICENSE AND CERTAIN INFORMATION A LICENSEE SHALL PROVIDE TO THE DEPARTMENT OF PUBLIC SAFETY IF THERE IS A CHANGE IN INFORMATION CONTAINED IN A LICENSE APPLICATION OR THE LICENSEE CEASES TO BE A DEALER OR WHOLESALER, SO AS TO REVISE THE CONDITIONS UPON WHICH THE BOND THAT ACCOMPANIES AN APPLICATION MUST BE BASED UPON, AND THE PERSONS WHO HAVE A RIGHT OF ACTION AGAINST THE BOND.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 56-15-320(B) of the 1976 Code, as last amended by Section 121L, Part II, Act 497 of 1994, is further amended to read:
"(B) Each applicant for licensure as a dealer or wholesaler shall furnish a surety bond in the penal amount of fifteen thousand dollars on a form prescribed by the director 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 statutes applicable to the license and as indemnification for loss or damage suffered by an owner of a motor vehicle, or his legal representative, by reason of 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 loss or damage suffered by a person by reason of the violation by the dealer or wholesaler or his agent of this chapter. An owner or his legal representative A person 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. However, regardless of the number of years a bond remains in effect, the aggregate liability of the surety for claims is limited to fifteen thousand dollars on each bond and to the amount of the actual loss incurred. The surety may 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 liability incurred or accrued before the cancellation."
SECTION 2. This act takes effect upon approval by the Governor.