{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-1527.5.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-1527.5.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-1527.5.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-1527.5.html"}],"law_id":77640,"edition_id":1,"section_id":77640,"structure_id":13357,"section_number":"46.2-1527.5","catch_line":"Limitations on recovery from Fund","history":"1994, c. 478; 1995, cc. 767, 816; 1998, c. 325; 2001, c. 194; 2003, c. 331; 2006, c. 172; 2007, c. 826; 2011, c. 407; 2012, c. 119; 2015, cc. 615, 710.","full_text":"The maximum claim of one judgment creditor against the Fund based on an unpaid final judgment arising out of any loss or damage by reason of a claim submitted under \u00a7 46.2-1527.2 or 46.2-1527.3 involving a single transaction shall be limited to $25,000, including any amount paid from the dealer’s surety bond, regardless of the amount of the unpaid final judgment of one judgment creditor. On January 1 of each year, the amount that may be awarded 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 which may be awarded.\n\t\tThe aggregate of claims against the Fund based on unpaid final judgments arising out of any loss or damage by reason of a claim submitted under \u00a7 46.2-1527.3 involving more than one transaction shall be limited to four times the amount that may be awarded to a single judgment creditor, regardless of the total amounts of the unpaid final judgments of judgment creditors.\n\t\tHowever, aggregate claims against the Fund under \u00a7 46.2-1527.2 shall be limited to the amount that may be paid out of the Fund under the preceding paragraph less the amount of the dealer’s bond and then only after the dealer’s bond has been exhausted.\n\t\tIf a claim has been made against the Fund, and the Board has reason to believe that there may be additional claims against the Fund from other transactions involving the same licensee or registrant, the Board may withhold any payment from the Fund involving the licensee or registrant for a period not to exceed the end of the relevant license or registration period. After this period, if the aggregate of claims against the licensee or registrant exceeds the aggregate amount that may be paid from the Fund under this section, then such amount shall be prorated among the claimants and paid from the Fund in proportion to the amounts of their unpaid final judgments against the licensee or registrant.\n\t\tHowever, claims against motor vehicle dealers and salespersons participating in the Motor Vehicle Transaction Recovery Fund pursuant to \u00a7 46.2-1527.2 shall be prorated when the aggregate exceeds $50,000. Claims shall be prorated only after the dealer’s $50,000 bond has been exhausted.\n\t\tOn receipt of a verified claim filed against the Fund, the Board shall forthwith notify the licensee or registrant who is the subject of the unpaid judgment that a verified claim has been filed and that the licensee or registrant should satisfy the judgment debt. If the judgment debt is not fully satisfied 30 days following the date of the notification by the Board, the Board shall make payment from the Fund subject to the other limitations contained in this article.\n\t\tExcluded from the amount of any unpaid final judgment on which a claim against the Fund is based shall be any sums representing interest and punitive damages. Awards from the Fund shall be limited to reimbursement of costs paid to the dealer for all charges related to the vehicle including without limitation, the sales price, taxes, insurance, and repairs; other out of pocket costs related to the purchase, insuring and registration of the vehicle, and to the loss of use of the vehicle by the purchaser.\n\t\tIf at any time the Fund is insufficient to fully satisfy any claims or claim filed with the Board and authorized by this article, the Board shall pay such claims, claim, or portion thereof to the claimants in the order that the claims were filed with the Board. However, claims by retail purchasers shall take precedence over other claims.","order_by":null,"text":{"0":{"id":278511,"text":"The maximum claim of one judgment creditor against the Fund based on an unpaid final judgment arising out of any loss or damage by reason of a claim submitted under \u00a7 46.2-1527.2 or 46.2-1527.3 involving a single transaction shall be limited to $25,000, including any amount paid from the dealer’s surety bond, regardless of the amount of the unpaid final judgment of one judgment creditor. On January 1 of each year, the amount that may be awarded 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 which may be awarded.\n\t\tThe aggregate of claims against the Fund based on unpaid final judgments arising out of any loss or damage by reason of a claim submitted under \u00a7 46.2-1527.3 involving more than one transaction shall be limited to four times the amount that may be awarded to a single judgment creditor, regardless of the total amounts of the unpaid final judgments of judgment creditors.\n\t\tHowever, aggregate claims against the Fund under \u00a7 46.2-1527.2 shall be limited to the amount that may be paid out of the Fund under the preceding paragraph less the amount of the dealer’s bond and then only after the dealer’s bond has been exhausted.\n\t\tIf a claim has been made against the Fund, and the Board has reason to believe that there may be additional claims against the Fund from other transactions involving the same licensee or registrant, the Board may withhold any payment from the Fund involving the licensee or registrant for a period not to exceed the end of the relevant license or registration period. After this period, if the aggregate of claims against the licensee or registrant exceeds the aggregate amount that may be paid from the Fund under this section, then such amount shall be prorated among the claimants and paid from the Fund in proportion to the amounts of their unpaid final judgments against the licensee or registrant.\n\t\tHowever, claims against motor vehicle dealers and salespersons participating in the Motor Vehicle Transaction Recovery Fund pursuant to \u00a7 46.2-1527.2 shall be prorated when the aggregate exceeds $50,000. Claims shall be prorated only after the dealer’s $50,000 bond has been exhausted.\n\t\tOn receipt of a verified claim filed against the Fund, the Board shall forthwith notify the licensee or registrant who is the subject of the unpaid judgment that a verified claim has been filed and that the licensee or registrant should satisfy the judgment debt. If the judgment debt is not fully satisfied 30 days following the date of the notification by the Board, the Board shall make payment from the Fund subject to the other limitations contained in this article.\n\t\tExcluded from the amount of any unpaid final judgment on which a claim against the Fund is based shall be any sums representing interest and punitive damages. Awards from the Fund shall be limited to reimbursement of costs paid to the dealer for all charges related to the vehicle including without limitation, the sales price, taxes, insurance, and repairs; other out of pocket costs related to the purchase, insuring and registration of the vehicle, and to the loss of use of the vehicle by the purchaser.\n\t\tIf at any time the Fund is insufficient to fully satisfy any claims or claim filed with the Board and authorized by this article, the Board shall pay such claims, claim, or portion thereof to the claimants in the order that the claims were filed with the Board. However, claims by retail purchasers shall take precedence over other claims.","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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-1527.5\/","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 9 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 2003, chapter 331<\/a>; in 2006, chapter 172<\/a>; in 2007, chapter 826<\/a>; in 2011, chapter 407<\/a>; in 2012, chapter 119<\/a>; in 2015, chapters 615<\/a> and 710<\/a>.<\/p>","references":false,"refers_to":[{"id":70680,"section_number":"46.2-1527.2","catch_line":"Bonding requirements for applicants for an original license","order_by":null,"url":"\/46.2-1527.2\/"},{"id":74246,"section_number":"46.2-1527.3","catch_line":"Recovery from Fund, generally","order_by":null,"url":"\/46.2-1527.3\/"}],"permalink":{"id":231247,"object_type":"law","relational_id":77640,"identifier":"46.2-1527.5","token":"46.2\/IV\/15\/3.1\/46.2-1527.5","url":"\/46.2-1527.5\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-1527.5\/","token":"46.2\/IV\/15\/3.1\/46.2-1527.5","dublin_core":{"Title":"Limitations on recovery from Fund","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1527.5","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

The maximum claim of one judgment creditor<\/span> against the Fund<\/span> based on an unpaid final judgment arising out of any loss or damage by reason of a claim submitted under \u00a7 46.2-1527.2<\/a> or 46.2-1527.3<\/a> involving a single transaction shall be limited to $25,000, including any amount paid from the dealer<\/span>’s surety<\/span> bond<\/span>, regardless of the amount of the unpaid final judgment of one judgment creditor<\/span>. On January 1 of each year, the amount that may be awarded 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 which may be awarded.\n\t\tThe aggregate of claims against the Fund<\/span> based on unpaid final judgments<\/span> arising out of any loss or damage by reason of a claim submitted under \u00a7 46.2-1527.3<\/a> involving more than one transaction shall be limited to four times the amount that may be awarded to a single judgment creditor<\/span>, regardless of the total amounts of the unpaid final judgments<\/span> of judgment creditors<\/span>.\n\t\tHowever, aggregate claims against the Fund<\/span> under \u00a7 46.2-1527.2<\/a> shall be limited to the amount that may be paid out of the Fund<\/span> under the preceding paragraph less the amount of the dealer<\/span>’s bond<\/span> and then only after the dealer<\/span>’s bond<\/span> has been exhausted.\n\t\tIf a claim has been made against the Fund<\/span>, and the Board<\/span> has reason to believe that there may be additional claims against the Fund<\/span> from other transactions involving the same licensee or registrant, the Board<\/span> may withhold any payment from the Fund<\/span> involving the licensee or registrant for a period not to exceed the end of the relevant license or registration period. After this period, if the aggregate of claims against the licensee or registrant exceeds the aggregate amount that may be paid from the Fund<\/span> under this section, then such amount shall be prorated among the claimants and paid from the Fund<\/span> in proportion to the amounts of their unpaid final judgments<\/span> against the licensee or registrant.\n\t\tHowever, claims against motor vehicle dealers<\/span> and salespersons<\/span> participating in the Motor Vehicle Transaction Recovery Fund<\/span> pursuant to \u00a7 46.2-1527.2<\/a> shall be prorated when the aggregate exceeds $50,000. Claims shall be prorated only after the dealer<\/span>’s $50,000 bond<\/span> has been exhausted.\n\t\tOn receipt of a verified claim filed against the Fund<\/span>, the Board<\/span> shall forthwith notify the licensee or registrant who is the subject of the unpaid judgment that a verified claim has been filed and that the licensee or registrant should satisfy the judgment debt. If the judgment debt is not fully satisfied 30 days following the date of the notification by the Board<\/span>, the Board<\/span> shall make payment from the Fund<\/span> subject to the other limitations contained in this article.\n\t\tExcluded from the amount of any unpaid final judgment on which a claim against the Fund<\/span> is based shall be any sums representing interest and punitive damages<\/span>. Awards from the Fund<\/span> shall be limited to reimbursement of costs paid to the dealer<\/span> for all charges related to the vehicle including without limitation, the sales price, taxes, insurance, and repairs; other out of pocket costs related to the purchase, insuring and registration of the vehicle, and to the loss of use of the vehicle by the purchaser.\n\t\tIf at any time the Fund<\/span> is insufficient to fully satisfy any claims or claim filed with the Board<\/span> and authorized by this article, the Board<\/span> shall pay such claims, claim, or portion thereof to the claimants in the order<\/span> that the claims were filed with the Board<\/span>. However, claims by retail purchasers shall take precedence over other claims.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLIMITATIONS ON RECOVERY FROM FUND (\u00a7 46.2-1527.5)\n\nThe maximum claim of one judgment creditor against the Fund based on an unpaid\nfinal judgment arising out of any loss or damage by reason of a claim submitted\nunder \u00a7 46.2-1527.2 or 46.2-1527.3 involving a single transaction shall be\nlimited to $25,000, including any amount paid from the dealer’s surety\nbond, regardless of the amount of the unpaid final judgment of one judgment\ncreditor. On January 1 of each year, the amount that may be awarded to any\nperson as a result of loss or damage to that person as provided in this section\nshall be increased by the percentage increase over the most recently available\nunadjusted 12-month period in the Consumer Price Index for used motor vehicles,\nas published by the U.S. Bureau of Labor Statistics or any successor index. In\nthe event that this index decreases over any such 12-month period, there shall\nbe no change in the amount which may be awarded.\n\t\tThe aggregate of claims against the Fund based on unpaid final judgments\narising out of any loss or damage by reason of a claim submitted under \u00a7\n46.2-1527.3 involving more than one transaction shall be limited to four times\nthe amount that may be awarded to a single judgment creditor, regardless of the\ntotal amounts of the unpaid final judgments of judgment creditors.\n\t\tHowever, aggregate claims against the Fund under \u00a7 46.2-1527.2 shall be\nlimited to the amount that may be paid out of the Fund under the preceding\nparagraph less the amount of the dealer’s bond and then only after the\ndealer’s bond has been exhausted.\n\t\tIf a claim has been made against the Fund, and the Board has reason to believe\nthat there may be additional claims against the Fund from other transactions\ninvolving the same licensee or registrant, the Board may withhold any payment\nfrom the Fund involving the licensee or registrant for a period not to exceed\nthe end of the relevant license or registration period. After this period, if\nthe aggregate of claims against the licensee or registrant exceeds the aggregate\namount that may be paid from the Fund under this section, then such amount shall\nbe prorated among the claimants and paid from the Fund in proportion to the\namounts of their unpaid final judgments against the licensee or registrant.\n\t\tHowever, claims against motor vehicle dealers and salespersons participating\nin the Motor Vehicle Transaction Recovery Fund pursuant to \u00a7 46.2-1527.2 shall\nbe prorated when the aggregate exceeds $50,000. Claims shall be prorated only\nafter the dealer’s $50,000 bond has been exhausted.\n\t\tOn receipt of a verified claim filed against the Fund, the Board shall\nforthwith notify the licensee or registrant who is the subject of the unpaid\njudgment that a verified claim has been filed and that the licensee or\nregistrant should satisfy the judgment debt. If the judgment debt is not fully\nsatisfied 30 days following the date of the notification by the Board, the Board\nshall make payment from the Fund subject to the other limitations contained in\nthis article.\n\t\tExcluded from the amount of any unpaid final judgment on which a claim against\nthe Fund is based shall be any sums representing interest and punitive damages.\nAwards from the Fund shall be limited to reimbursement of costs paid to the\ndealer for all charges related to the vehicle including without limitation, the\nsales price, taxes, insurance, and repairs; other out of pocket costs related to\nthe purchase, insuring and registration of the vehicle, and to the loss of use\nof the vehicle by the purchaser.\n\t\tIf at any time the Fund is insufficient to fully satisfy any claims or claim\nfiled with the Board and authorized by this article, the Board shall pay such\nclaims, claim, or portion thereof to the claimants in the order that the claims\nwere filed with the Board. However, claims by retail purchasers shall take\nprecedence over other claims.\n\nHISTORY: 1994, c. 478; 1995, cc. 767, 816; 1998, c. 325; 2001, c. 194; 2003, c.\n331; 2006, c. 172; 2007, c. 826; 2011, c. 407; 2012, c. 119; 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}}