{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-1527.10.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-1527.10.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-1527.10.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-1527.10.html"}],"law_id":67881,"edition_id":1,"section_id":67881,"structure_id":16397,"section_number":"46.2-1527.10","catch_line":"Recovery on bond","history":"2003, c. 331; 2015, cc. 615, 710.","full_text":"With respect to a motor vehicle dealer electing continuous bonding under \u00a7 46.2-1527.9, whenever any person is awarded a final judgment in a court of competent jurisdiction in the Commonwealth against the dealer for (i) any loss or damage in connection with the purchase or lease of a motor vehicle by reason of fraud practiced on him or fraudulent representation made to him by the dealer or one of the dealer’s salespersons acting within the scope of his employment, (ii) any loss or damage by reason of the violation by the dealer or salesperson of any provision of this chapter in connection with the purchase or lease of a motor vehicle, or (iii) any loss or damage resulting from a breach of an extended service contract, as defined in \u00a7 59.1-435, entered into on or after July 1, 2003, the judgment creditor shall have a claim against the dealer bond for such damages as may be awarded such person in final judgment and unpaid by the dealer, and may recover such unpaid damages up to but not exceeding the maximum liability of the surety as set forth in \u00a7 46.2-1527.9 from the surety who shall be subrogated to the rights of such person against the dealer or salesperson. The liability of such surety shall be limited to actual damages and attorney fees assessed against the dealer or salesperson as part of the underlying judgment but this section does not authorize the award of attorney fees in the underlying judgment. The liability of such surety shall not include any sums representing interest or punitive damages assessed against the dealer or salesperson.\n\t\tThe dealer’s surety shall notify the Board when a claim is made against a dealer’s bond, when a claim is paid, and when the bond is cancelled. Such notification shall include the amount of claim and the circumstances surrounding the claim. Notification of cancellation shall include the effective date and reason for cancellation. The bond may be cancelled as to future liability by the dealer’s surety upon 30 days’ notice to the Board.","order_by":null,"text":{"0":{"id":245817,"text":"With respect to a motor vehicle dealer electing continuous bonding under \u00a7 46.2-1527.9, whenever any person is awarded a final judgment in a court of competent jurisdiction in the Commonwealth against the dealer for (i) any loss or damage in connection with the purchase or lease of a motor vehicle by reason of fraud practiced on him or fraudulent representation made to him by the dealer or one of the dealer’s salespersons acting within the scope of his employment, (ii) any loss or damage by reason of the violation by the dealer or salesperson of any provision of this chapter in connection with the purchase or lease of a motor vehicle, or (iii) any loss or damage resulting from a breach of an extended service contract, as defined in \u00a7 59.1-435, entered into on or after July 1, 2003, the judgment creditor shall have a claim against the dealer bond for such damages as may be awarded such person in final judgment and unpaid by the dealer, and may recover such unpaid damages up to but not exceeding the maximum liability of the surety as set forth in \u00a7 46.2-1527.9 from the surety who shall be subrogated to the rights of such person against the dealer or salesperson. The liability of such surety shall be limited to actual damages and attorney fees assessed against the dealer or salesperson as part of the underlying judgment but this section does not authorize the award of attorney fees in the underlying judgment. The liability of such surety shall not include any sums representing interest or punitive damages assessed against the dealer or salesperson.\n\t\tThe dealer’s surety shall notify the Board when a claim is made against a dealer’s bond, when a claim is paid, and when the bond is cancelled. Such notification shall include the amount of claim and the circumstances surrounding the claim. Notification of cancellation shall include the effective date and reason for cancellation. The bond may be cancelled as to future liability by the dealer’s surety upon 30 days’ notice to the Board.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":16397,"edition_id":1,"name":"Bonding Requirements for Dealers Not Participating in Motor Vehicle Transaction Recovery Fund","identifier":"3.2","label":"article","depth":4,"order_by":1,"parent_id":13356,"metadata":{},"date_created":"2026-06-26 04:16:32","date_modified":"2026-06-26 04:16:32","permalink":{"id":231263,"object_type":"structure","relational_id":16397,"identifier":"3.2","token":"46.2\/IV\/15\/3.2","url":"\/46.2\/IV\/15\/3.2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13356,"edition_id":1,"name":"Motor Vehicle Dealers","identifier":"15","label":"chapter","depth":3,"order_by":1,"parent_id":13355,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":231067,"object_type":"structure","relational_id":13356,"identifier":"15","token":"46.2\/IV\/15","url":"\/46.2\/IV\/15\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13355,"edition_id":1,"name":"Dealers and Driver Training Schools","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12770,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":231065,"object_type":"structure","relational_id":13355,"identifier":"IV","token":"46.2\/IV","url":"\/46.2\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12770,"edition_id":1,"name":"Motor Vehicles","identifier":"46.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:52","date_modified":"2026-06-26 03:43:52","permalink":{"id":225289,"object_type":"structure","relational_id":12770,"identifier":"46.2","token":"46.2","url":"\/46.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":67881,"structure_id":16397,"section_number":"46.2-1527.10","catch_line":"Recovery on bond","url":"\/46.2-1527.10\/","token":"46.2\/IV\/15\/3.2\/46.2-1527.10","metadata":false},{"id":87416,"structure_id":16397,"section_number":"46.2-1527.11","catch_line":"No waiver by the Board of disciplinary action against licensee or registrant","url":"\/46.2-1527.11\/","token":"46.2\/IV\/15\/3.2\/46.2-1527.11","metadata":false},{"id":83757,"structure_id":16397,"section_number":"46.2-1527.9","catch_line":"Continuous bonding requirements for Fund nonparticipants","url":"\/46.2-1527.9\/","token":"46.2\/IV\/15\/3.2\/46.2-1527.9","metadata":false}],"next_section":{"id":87416,"structure_id":16397,"section_number":"46.2-1527.11","catch_line":"No waiver by the Board of disciplinary action against licensee or registrant","url":"\/46.2-1527.11\/","token":"46.2\/IV\/15\/3.2\/46.2-1527.11","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-1527.10\/","history_text":"

This law was first created in 2003. The record of its establishment is cataloged in chapter 331<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2015, chapters 615<\/a> and 710<\/a>.<\/p>","references":[{"id":83757,"section_number":"46.2-1527.9","catch_line":"Continuous bonding requirements for Fund nonparticipants","order_by":null,"url":"\/46.2-1527.9\/"}],"refers_to":[{"id":83757,"section_number":"46.2-1527.9","catch_line":"Continuous bonding requirements for Fund nonparticipants","order_by":null,"url":"\/46.2-1527.9\/"},{"id":65655,"section_number":"59.1-435","catch_line":"Definitions","order_by":null,"url":"\/59.1-435\/"}],"permalink":{"id":231265,"object_type":"law","relational_id":67881,"identifier":"46.2-1527.10","token":"46.2\/IV\/15\/3.2\/46.2-1527.10","url":"\/46.2-1527.10\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-1527.10\/","token":"46.2\/IV\/15\/3.2\/46.2-1527.10","dublin_core":{"Title":"Recovery on bond","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1527.10","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

With respect to a motor vehicle dealer<\/span> electing continuous bonding under \u00a7 46.2-1527.9<\/a>, whenever any person is awarded a final judgment in a court<\/span> of competent jurisdiction<\/span> in the Commonwealth against the dealer for (i) any loss or damage in connection with the purchase or lease of a motor vehicle by reason of fraud<\/span> practiced on him or fraudulent representation made to him by the dealer or one of the dealer’s salespersons<\/span> acting within the scope of his employment, (ii) any loss or damage by reason of the violation by the dealer or salesperson<\/span> of any provision of this chapter in connection with the purchase or lease of a motor vehicle, or (iii) any loss or damage resulting from a breach of an extended service contract<\/span>, as defined in \u00a7 59.1-435<\/a>, entered into on or after July 1, 2003, the judgment creditor<\/span> shall have a claim against the dealer bond<\/span> for such damages<\/span> as may be awarded such person in final judgment and unpaid by the dealer, and may recover such unpaid damages<\/span> up to but not exceeding the maximum liability of the surety<\/span> as set forth in \u00a7 46.2-1527.9<\/a> from the surety<\/span> who shall be subrogated to the rights of such person against the dealer or salesperson<\/span>. The liability of such surety<\/span> shall be limited to actual damages<\/span> and attorney fees assessed against the dealer or salesperson<\/span> as part of the underlying judgment but this section does not authorize the award of attorney fees in the underlying judgment. The liability of such surety<\/span> shall not include any sums representing interest or punitive damages<\/span> assessed against the dealer or salesperson<\/span>.\n\t\tThe dealer’s surety<\/span> shall notify the Board<\/span> when a claim is made against a dealer’s bond<\/span>, when a claim is paid, and when the bond<\/span> is cancelled. Such notification shall include the amount of claim and the circumstances surrounding the claim. Notification of cancellation<\/span> shall include the effective date and reason for cancellation<\/span>. The bond<\/span> may be cancelled as to future liability by the dealer’s surety<\/span> upon 30 days’ notice to the Board<\/span>.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRECOVERY ON BOND (\u00a7 46.2-1527.10)\n\nWith respect to a motor vehicle dealer electing continuous bonding under \u00a7\n46.2-1527.9, whenever any person is awarded a final judgment in a court of\ncompetent jurisdiction in the Commonwealth against the dealer for (i) any loss\nor damage in connection with the purchase or lease of a motor vehicle by reason\nof fraud practiced on him or fraudulent representation made to him by the dealer\nor one of the dealer’s salespersons acting within the scope of his\nemployment, (ii) any loss or damage by reason of the violation by the dealer or\nsalesperson of any provision of this chapter in connection with the purchase or\nlease of a motor vehicle, or (iii) any loss or damage resulting from a breach of\nan extended service contract, as defined in \u00a7 59.1-435, entered into on or\nafter July 1, 2003, the judgment creditor shall have a claim against the dealer\nbond for such damages as may be awarded such person in final judgment and unpaid\nby the dealer, and may recover such unpaid damages up to but not exceeding the\nmaximum liability of the surety as set forth in \u00a7 46.2-1527.9 from the surety\nwho shall be subrogated to the rights of such person against the dealer or\nsalesperson. The liability of such surety shall be limited to actual damages and\nattorney fees assessed against the dealer or salesperson as part of the\nunderlying judgment but this section does not authorize the award of attorney\nfees in the underlying judgment. The liability of such surety shall not include\nany sums representing interest or punitive damages assessed against the dealer\nor salesperson.\n\t\tThe dealer’s surety shall notify the Board when a claim is made against\na dealer’s bond, when a claim is paid, and when the bond is cancelled.\nSuch notification shall include the amount of claim and the circumstances\nsurrounding the claim. Notification of cancellation shall include the effective\ndate and reason for cancellation. The bond may be cancelled as to future\nliability by the dealer’s surety upon 30 days’ notice to the Board.\n\nHISTORY: 2003, c. 331; 2015, cc. 615, 710.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}