South Carolina General Assembly
117th Session, 2007-2008

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H. 3981

STATUS INFORMATION

General Bill
Sponsors: Rep. Walker
Document Path: l:\council\bills\dka\3268ssp07.doc
Companion/Similar bill(s): 647

Introduced in the House on April 25, 2007
Currently residing in the House Committee on Labor, Commerce and Industry

Summary: Surety bonds

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   4/25/2007  House   Introduced and read first time HJ-6
   4/25/2007  House   Referred to Committee on Labor, Commerce and Industry 
                        HJ-6

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

4/25/2007

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND SECTIONS 31-17-530, 56-15-570, 56-16-150, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT FOR A SURETY BOND IN THE AMOUNT OF FIFTEEN THOUSAND DOLLARS FOR AN APPLICANT FOR LICENSURE AS A TRAVEL TRAILER DEALER, A WHOLESALE MOTOR VEHICLE AUCTION, AND A MOTORCYCLE DEALER OR WHOLESALER, SO AS TO INCREASE THE SURETY BOND AMOUNT TO THIRTY THOUSAND DOLLARS FOR EACH OF THESE APPLICANTS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 31-17-530 of the 1976 Code is amended to read:

"Section 31-17-530.    (1)    Before any license as a 'dealer' is issued to an applicant, he must shall file an application with the department and furnish the information the department may require, including, but not limited to, information adequately identifying by name and address any an individual who owns or controls ten percent or more of the interest in the business. The policy of this section is full disclosure.

(2)    Each applicant for licensure as a travel trailer dealer must shall furnish a surety bond in the penal amount of fifteen thirty thousand dollars on a form to be prescribed by 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 travel trailer, or his legal representative, by reason of any fraud practiced or fraudulent representation made in connection with the sale or transfer of a travel trailer by a licensed dealer or the dealer's agent acting for the dealer or within the scope of employment of the agent or any loss or damage suffered by reason of the violation by the dealer or his agent, of any of the provisions of this article. An owner or his legal representative who suffers the loss or damage has a right of action against the dealer and against the dealer's surety upon the bond and may recover damages as provided in this article. 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 thirty 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 a written notice thirty days' written notice of before its intent to cancel the bond. The cancellation does not affect any liability incurred or accrued prior to before the cancellation.

(3)    If, during any license year, there is any change in the information that a dealer gave the department in obtaining or retaining a license under this section, the licensee shall report the change to the department within thirty days after the change occurs on the form the department requires.

(4)    In the event If a licensee ceases being a dealer, he shall notify, within ten days thereafter, notify the department of this fact and return to the department any license issued pursuant to this article and all current dealer license plates issued to the dealer."

SECTION    2.    Section 56-15-570 of the 1976 Code is amended to read:

"Section 56-15-570.    (A)    Each applicant for licensure as a wholesale motor vehicle auction shall furnish a surety bond in the penal amount of fifteen thirty thousand dollars on a form prescribed by the Department of Motor Vehicles. 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 by the licensee in connection with the sale or transfer of a motor vehicle by the licensee or its agent acting for it or within the scope of employment of the agent or loss or damage suffered by reason of a violation by the licensee or its agent of this chapter.

(B)    An owner or his legal representative who suffers loss or damage has a right of action against the wholesale motor vehicle auction and against the licensee'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 all claims is limited to fifteen thirty 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 a written notice thirty days' written notice of before its intent to cancel the bond. The surety shall notify the department if the bond is canceled. The cancellation does not affect liability incurred or accrued before the cancellation."

SECTION    3.    Section 56-16-150 of the 1976 Code is amended to read:

"Section 56-16-150.    (1)    Before any license as a 'wholesaler' or 'dealer' is issued to an applicant, he must shall file an application with the Department of Motor Vehicles and furnish the information the department may require, including, but not limited to, information adequately identifying by name and address any an individual who owns or controls ten percent or more of the interest in the business. The policy of this section is full disclosure.

(2)    Each applicant for licensure as a motorcycle dealer or wholesaler must shall furnish a surety bond in the penal amount of fifteen thirty thousand dollars on a form to be 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 provisions of the statutes applicable to the license and as indemnification for any loss or damage suffered by an owner of a motorcycle, or his legal representative, by reason of any fraud practiced or fraudulent representation made in connection with the sale or transfer of a motorcycle 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 thirty 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 a written notice thirty days' written notice of before its intent to cancel the bond. The cancellation does not affect any liability incurred or accrued prior to before the cancellation.

(3)    If, during any license year, there is any change in the information that a dealer or wholesaler gave the department in obtaining or retaining a license under this section, the licensee shall report the change to the department within thirty days after the change occurs on the form the department requires.

(4)    In the event If a licensee ceases being a dealer or wholesaler, he shall notify, within ten days thereafter, notify the department of this fact and return to the department any license issued pursuant to this chapter and all current dealer license plates issued to the dealer or wholesaler."

SECTION    4.    This act takes effect upon approval by the Governor.

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