{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-1527.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-1527.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-1527.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-1527.2.html"}],"law_id":70680,"edition_id":1,"section_id":70680,"structure_id":13357,"section_number":"46.2-1527.2","catch_line":"Bonding requirements for applicants for an original license","history":"1994, c. 478; 1995, cc. 767, 816; 1998, c. 325; 2001, c. 194; 2006, c. 172; 2011, c. 407; 2012, cc. 10, 119; 2015, c. 615.","full_text":"Before the Board shall issue to an applicant an original license, the applicant shall obtain and file with the Board a bond in the amount of $50,000. The bond shall come from a corporate surety licensed to do business in the Commonwealth and approved by the Attorney General. The bond shall be conditioned on a statement by the applicant that the applicant will not practice fraud, make any fraudulent representation, or violate any provision of this chapter in the conduct of the applicant’s business. The Board may, without holding a hearing, suspend the dealer’s license during the period that the dealer does not have a sufficient bond on file.\n\t\tIf a person suffers any of the following: (i) 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 a licensed motor vehicle dealer or one of the dealer’s salespersons acting within his scope of employment, (ii) loss or damage by reason of the violation by a dealer or salesperson of any provision of this chapter in connection with the purchase or lease of a motor vehicle, or (iii) loss or damage resulting from a breach of an extended service contract as defined by \u00a7 59.1-435 entered into on or after April 8, 1994, that person shall have a claim against the dealer and the dealer’s bond, and may recover such damages as may be awarded to such person by final judgment of a court of competent jurisdiction against the dealer as a proximate result of such loss or damage up to but not exceeding $25,000, from such 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 and shall not include any punitive damages assessed against the dealer or salesperson. On January 1 of each year, the amount that may be awarded against such bond to any person as a result of loss or damage to that person as provided in this section shall be increased by the percentage increase over the most recently available unadjusted 12-month period in the Consumer Price Index for used motor vehicles, as published by the U.S. Bureau of Labor Statistics or any successor index. In the event that this index decreases over any such 12-month period, there shall be no change in the amount that may be awarded.\n\t\tIn those cases in which a dealer’s surety shall be liable pursuant to this section, the surety shall be liable only for the first $50,000 in claims against the dealer. Thereafter, the Fund shall be liable for amounts in excess of the bond up to the amount that may be paid out of the Fund, less the amount of the bond, in those cases in which the Fund itself may be liable. The aggregate liability of the dealer’s surety to any and all persons, regardless of the number of claims made against the bond or the number of years the bond remains in force, shall in no event exceed $50,000.\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 a 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":254952,"text":"Before the Board shall issue to an applicant an original license, the applicant shall obtain and file with the Board a bond in the amount of $50,000. The bond shall come from a corporate surety licensed to do business in the Commonwealth and approved by the Attorney General. The bond shall be conditioned on a statement by the applicant that the applicant will not practice fraud, make any fraudulent representation, or violate any provision of this chapter in the conduct of the applicant’s business. The Board may, without holding a hearing, suspend the dealer’s license during the period that the dealer does not have a sufficient bond on file.\n\t\tIf a person suffers any of the following: (i) 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 a licensed motor vehicle dealer or one of the dealer’s salespersons acting within his scope of employment, (ii) loss or damage by reason of the violation by a dealer or salesperson of any provision of this chapter in connection with the purchase or lease of a motor vehicle, or (iii) loss or damage resulting from a breach of an extended service contract as defined by \u00a7 59.1-435 entered into on or after April 8, 1994, that person shall have a claim against the dealer and the dealer’s bond, and may recover such damages as may be awarded to such person by final judgment of a court of competent jurisdiction against the dealer as a proximate result of such loss or damage up to but not exceeding $25,000, from such 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 and shall not include any punitive damages assessed against the dealer or salesperson. On January 1 of each year, the amount that may be awarded against such bond to any person as a result of loss or damage to that person as provided in this section shall be increased by the percentage increase over the most recently available unadjusted 12-month period in the Consumer Price Index for used motor vehicles, as published by the U.S. Bureau of Labor Statistics or any successor index. In the event that this index decreases over any such 12-month period, there shall be no change in the amount that may be awarded.\n\t\tIn those cases in which a dealer’s surety shall be liable pursuant to this section, the surety shall be liable only for the first $50,000 in claims against the dealer. Thereafter, the Fund shall be liable for amounts in excess of the bond up to the amount that may be paid out of the Fund, less the amount of the bond, in those cases in which the Fund itself may be liable. The aggregate liability of the dealer’s surety to any and all persons, regardless of the number of claims made against the bond or the number of years the bond remains in force, shall in no event exceed $50,000.\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 a 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":13357,"edition_id":1,"name":"Motor Vehicle Transaction Recovery Fund","identifier":"3.1","label":"article","depth":4,"order_by":1,"parent_id":13356,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":231229,"object_type":"structure","relational_id":13357,"identifier":"3.1","token":"46.2\/IV\/15\/3.1","url":"\/46.2\/IV\/15\/3.1\/","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":54334,"structure_id":13357,"section_number":"46.2-1527.1","catch_line":"Motor Vehicle Transaction Recovery Fund established","url":"\/46.2-1527.1\/","token":"46.2\/IV\/15\/3.1\/46.2-1527.1","metadata":false},{"id":70680,"structure_id":13357,"section_number":"46.2-1527.2","catch_line":"Bonding requirements for applicants for an original license","url":"\/46.2-1527.2\/","token":"46.2\/IV\/15\/3.1\/46.2-1527.2","metadata":false},{"id":74246,"structure_id":13357,"section_number":"46.2-1527.3","catch_line":"Recovery from Fund, generally","url":"\/46.2-1527.3\/","token":"46.2\/IV\/15\/3.1\/46.2-1527.3","metadata":false},{"id":82456,"structure_id":13357,"section_number":"46.2-1527.4","catch_line":"Opportunity to intervene","url":"\/46.2-1527.4\/","token":"46.2\/IV\/15\/3.1\/46.2-1527.4","metadata":false},{"id":77640,"structure_id":13357,"section_number":"46.2-1527.5","catch_line":"Limitations on recovery from Fund","url":"\/46.2-1527.5\/","token":"46.2\/IV\/15\/3.1\/46.2-1527.5","metadata":false},{"id":63395,"structure_id":13357,"section_number":"46.2-1527.6","catch_line":"Assignment of claimant's rights to the Board; payment of claims","url":"\/46.2-1527.6\/","token":"46.2\/IV\/15\/3.1\/46.2-1527.6","metadata":false},{"id":55176,"structure_id":13357,"section_number":"46.2-1527.7","catch_line":"Revocation of license or certificate of registration on payment from the Fund","url":"\/46.2-1527.7\/","token":"46.2\/IV\/15\/3.1\/46.2-1527.7","metadata":false},{"id":55651,"structure_id":13357,"section_number":"46.2-1527.8","catch_line":"No waiver by the Board of disciplinary action against licensee or registrant","url":"\/46.2-1527.8\/","token":"46.2\/IV\/15\/3.1\/46.2-1527.8","metadata":false}],"previous_section":{"id":54334,"structure_id":13357,"section_number":"46.2-1527.1","catch_line":"Motor Vehicle Transaction Recovery Fund established","url":"\/46.2-1527.1\/","token":"46.2\/IV\/15\/3.1\/46.2-1527.1","metadata":false},"next_section":{"id":74246,"structure_id":13357,"section_number":"46.2-1527.3","catch_line":"Recovery from Fund, generally","url":"\/46.2-1527.3\/","token":"46.2\/IV\/15\/3.1\/46.2-1527.3","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-1527.2\/","history_text":"

This law was first created in 1994. The record of its establishment is cataloged in chapter 478<\/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 7 times. 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. Those modifications are as follows: in 1995, chapters 767<\/a> and 816<\/a>; in 1998, chapter 325<\/a>; in 2001, chapter 194<\/a>; in 2006, chapter 172<\/a>; in 2011, chapter 407<\/a>; in 2012, chapters 10<\/a> and 119<\/a>; in 2015, chapter 615<\/a>.<\/p>","references":[{"id":54334,"section_number":"46.2-1527.1","catch_line":"Motor Vehicle Transaction Recovery Fund established","order_by":null,"url":"\/46.2-1527.1\/"},{"id":77640,"section_number":"46.2-1527.5","catch_line":"Limitations on recovery from Fund","order_by":null,"url":"\/46.2-1527.5\/"},{"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":65655,"section_number":"59.1-435","catch_line":"Definitions","order_by":null,"url":"\/59.1-435\/"}],"permalink":{"id":231235,"object_type":"law","relational_id":70680,"identifier":"46.2-1527.2","token":"46.2\/IV\/15\/3.1\/46.2-1527.2","url":"\/46.2-1527.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-1527.2\/","token":"46.2\/IV\/15\/3.1\/46.2-1527.2","dublin_core":{"Title":"Bonding requirements for applicants for an original license","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1527.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Before the Board<\/span> shall issue<\/span> to an applicant an original license<\/span>, the applicant shall obtain and file with the Board<\/span> a bond<\/span> in the amount of $50,000. The bond<\/span> shall come from a corporate surety<\/span> licensed to do business in the Commonwealth and approved by the Attorney General<\/span>. The bond<\/span> shall be conditioned on a statement by the applicant that the applicant will not practice fraud<\/span>, make any fraudulent representation, or violate any provision of this chapter in the conduct of the applicant’s business. The Board<\/span> may, without holding a hearing<\/span>, suspend<\/span> the dealer’s license during the period that the dealer does not have a sufficient bond<\/span> on file.\n\t\tIf a person suffers any of the following: (i) 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 a licensed motor vehicle dealer<\/span> or one of the dealer’s salespersons<\/span> acting within his scope of employment, (ii) loss or damage by reason of the violation by a dealer or salesperson<\/span> of any provision of this chapter in connection with the purchase or lease of a motor vehicle, or (iii) loss or damage resulting from a breach of an extended service contract<\/span> as defined by \u00a7 59.1-435<\/a> entered into on or after April 8, 1994, that person shall have a claim against the dealer and the dealer’s bond<\/span>, and may recover such damages<\/span> as may be awarded to such person by final judgment<\/span> of a court<\/span> of competent jurisdiction<\/span> against the dealer as a proximate result of such loss or damage up to but not exceeding $25,000, from such 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 and shall not include any punitive damages<\/span> assessed against the dealer or salesperson<\/span>. On January 1 of each year, the amount that may be awarded against such bond<\/span> to any person as a result of loss or damage to that person as provided in this section shall be increased by the percentage increase over the most recently available unadjusted 12-month period in the Consumer Price Index for used motor vehicles<\/span>, as published by the U.S. Bureau of Labor Statistics or any successor index. In the event that this index decreases over any such 12-month period, there shall be no change in the amount that may be awarded.\n\t\tIn those cases in which a dealer’s surety<\/span> shall be liable pursuant to this section, the surety<\/span> shall be liable only for the first $50,000 in claims against the dealer. Thereafter, the Fund<\/span> shall be liable for amounts in excess of the bond<\/span> up to the amount that may be paid out of the Fund<\/span>, less the amount of the bond<\/span>, in those cases in which the Fund<\/span> itself may be liable. The aggregate liability of the dealer’s surety<\/span> to any and all persons, regardless of the number of claims made against the bond<\/span> or the number of years the bond<\/span> remains in force, shall in no event exceed $50,000.\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 a 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\nBONDING REQUIREMENTS FOR APPLICANTS FOR AN ORIGINAL LICENSE (\u00a7 46.2-1527.2)\n\nBefore the Board shall issue to an applicant an original license, the applicant\nshall obtain and file with the Board a bond in the amount of $50,000. The bond\nshall come from a corporate surety licensed to do business in the Commonwealth\nand approved by the Attorney General. The bond shall be conditioned on a\nstatement by the applicant that the applicant will not practice fraud, make any\nfraudulent representation, or violate any provision of this chapter in the\nconduct of the applicant’s business. The Board may, without holding a\nhearing, suspend the dealer’s license during the period that the dealer\ndoes not have a sufficient bond on file.\n\t\tIf a person suffers any of the following: (i) loss or damage in connection\nwith the purchase or lease of a motor vehicle by reason of fraud practiced on\nhim or fraudulent representation made to him by a licensed motor vehicle dealer\nor one of the dealer’s salespersons acting within his scope of employment,\n(ii) loss or damage by reason of the violation by a dealer or salesperson of any\nprovision of this chapter in connection with the purchase or lease of a motor\nvehicle, or (iii) loss or damage resulting from a breach of an extended service\ncontract as defined by \u00a7 59.1-435 entered into on or after April 8, 1994, that\nperson shall have a claim against the dealer and the dealer’s bond, and\nmay recover such damages as may be awarded to such person by final judgment of a\ncourt of competent jurisdiction against the dealer as a proximate result of such\nloss or damage up to but not exceeding $25,000, from such surety, who shall be\nsubrogated to the rights of such person against the dealer or salesperson. The\nliability of such surety shall be limited to actual damages and attorney fees\nand shall not include any punitive damages assessed against the dealer or\nsalesperson. On January 1 of each year, the amount that may be awarded against\nsuch bond to any person as a result of loss or damage to that person as provided\nin this section shall be increased by the percentage increase over the most\nrecently available unadjusted 12-month period in the Consumer Price Index for\nused motor vehicles, as published by the U.S. Bureau of Labor Statistics or any\nsuccessor index. In the event that this index decreases over any such 12-month\nperiod, there shall be no change in the amount that may be awarded.\n\t\tIn those cases in which a dealer’s surety shall be liable pursuant to\nthis section, the surety shall be liable only for the first $50,000 in claims\nagainst the dealer. Thereafter, the Fund shall be liable for amounts in excess\nof the bond up to the amount that may be paid out of the Fund, less the amount\nof the bond, in those cases in which the Fund itself may be liable. The\naggregate liability of the dealer’s surety to any and all persons,\nregardless of the number of claims made against the bond or the number of years\nthe bond remains in force, shall in no event exceed $50,000.\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. Such\nnotification shall include the amount of a 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: 1994, c. 478; 1995, cc. 767, 816; 1998, c. 325; 2001, c. 194; 2006, c.\n172; 2011, c. 407; 2012, cc. 10, 119; 2015, c. 615.","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}}