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Indicates Matter Stricken
Indicates New Matter
S. 1034
STATUS INFORMATION
General Bill
Sponsors: Senators Land and Knotts
Document Path: l:\council\bills\swb\6641cm06.doc
Companion/Similar bill(s): 4532
Introduced in the Senate on January 11, 2006
Currently residing in the Senate Committee on Transportation
Summary: Automobile wholesaler and dealer license application
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 1/11/2006 Senate Introduced and read first time SJ-8 1/11/2006 Senate Referred to Committee on Transportation SJ-8
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 56-15-320, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AUTOMOBILE WHOLESALER AND DEALER LICENSES, SO AS TO INCREASE THE AMOUNT OF THE SURETY BOND AN APPLICANT FOR LICENSURE AS A WHOLESALER OR A DEALER MUST PROVIDE TO THE DEPARTMENT OF MOTOR VEHICLES AND TO INCREASE THE AGGREGATE LIABILITY OF THE SURETY FOR CLAIMS ON EACH BOND AND THE AMOUNT OF THE ACTUAL LOSS INCURRED.
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 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 thirty 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 reason of the violation by the dealer or wholesaler or his agent 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. However, regardless of the number of years a bond remains in effect, the aggregate liability of the surety for 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 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.
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