{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-1527.9.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-1527.9.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-1527.9.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-1527.9.html"}],"law_id":83757,"edition_id":1,"section_id":83757,"structure_id":16397,"section_number":"46.2-1527.9","catch_line":"Continuous bonding requirements for Fund nonparticipants","history":"2003, c. 331.","full_text":"Applicants for a renewal of a motor vehicle dealer’s license may elect to obtain and continuously maintain a bond in the amount of $100,000 in lieu of participation in the Motor Vehicle Transaction Recovery Fund, provided that such applicants have not been the subject of a claim against a bond issued pursuant to \u00a7 46.2-1527.2, or against the Fund for three consecutive years. The bond shall come from a corporate surety licensed to do business in the Commonwealth and approved by the Attorney General and shall be filed with the Board. 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. In those cases in which the surety of a dealer electing continuous bonding under this section shall be liable pursuant to this section, the maximum liability to one claimant against the surety by reason of a claim involving a single transaction shall be limited to $20,000 regardless of the amount of the claim by one claimant, and 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 effect shall in no event exceed $100,000.\n\t\tAn applicant for a renewal of a motor vehicle dealer’s license who is a member of a nonprofit organization established under 26 U.S.C. \u00a7 501(c) (6) that provides on behalf of its membership a blanket or umbrella bond in the amount of $1 million satisfies the bonding requirements of this section. When posted, a blanket or umbrella bond shall be considered a dealer bond for the purposes of \u00a7 46.2-1527.10. The bond shall come from a corporate surety licensed to do business in the Commonwealth and approved by the Attorney General and shall be filed with the Board. In those cases in which the nonprofit organization’s surety shall be liable pursuant to \u00a7 46.2-1527.10, the maximum liability to one claimant against the surety by reason of a claim involving a single transaction shall be limited to $20,000, regardless of the amount of the claim by one claimant, and the aggregate liability of the nonprofit organization’s surety to any and all persons for claims against a single dealer shall in no event exceed $100,000. In those cases in which the nonprofit organization’s surety shall be liable pursuant to \u00a7 46.2-1527.10, the maximum liability 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 $1 million.\n\t\tThe 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. Dealers bonded under this article and those salespersons employed by such dealers shall be exempt from the Fund fees specified in \u00a7 46.2-1527.1.","order_by":null,"text":{"0":{"id":300255,"text":"Applicants for a renewal of a motor vehicle dealer’s license may elect to obtain and continuously maintain a bond in the amount of $100,000 in lieu of participation in the Motor Vehicle Transaction Recovery Fund, provided that such applicants have not been the subject of a claim against a bond issued pursuant to \u00a7 46.2-1527.2, or against the Fund for three consecutive years. The bond shall come from a corporate surety licensed to do business in the Commonwealth and approved by the Attorney General and shall be filed with the Board. 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. In those cases in which the surety of a dealer electing continuous bonding under this section shall be liable pursuant to this section, the maximum liability to one claimant against the surety by reason of a claim involving a single transaction shall be limited to $20,000 regardless of the amount of the claim by one claimant, and 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 effect shall in no event exceed $100,000.\n\t\tAn applicant for a renewal of a motor vehicle dealer’s license who is a member of a nonprofit organization established under 26 U.S.C. \u00a7 501(c) (6) that provides on behalf of its membership a blanket or umbrella bond in the amount of $1 million satisfies the bonding requirements of this section. When posted, a blanket or umbrella bond shall be considered a dealer bond for the purposes of \u00a7 46.2-1527.10. The bond shall come from a corporate surety licensed to do business in the Commonwealth and approved by the Attorney General and shall be filed with the Board. In those cases in which the nonprofit organization’s surety shall be liable pursuant to \u00a7 46.2-1527.10, the maximum liability to one claimant against the surety by reason of a claim involving a single transaction shall be limited to $20,000, regardless of the amount of the claim by one claimant, and the aggregate liability of the nonprofit organization’s surety to any and all persons for claims against a single dealer shall in no event exceed $100,000. In those cases in which the nonprofit organization’s surety shall be liable pursuant to \u00a7 46.2-1527.10, the maximum liability 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 $1 million.\n\t\tThe 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. Dealers bonded under this article and those salespersons employed by such dealers shall be exempt from the Fund fees specified in \u00a7 46.2-1527.1.","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}],"previous_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\/46.2-1527.9\/","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.<\/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":67881,"section_number":"46.2-1527.10","catch_line":"Recovery on bond","order_by":null,"url":"\/46.2-1527.10\/"}],"refers_to":[{"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":67881,"section_number":"46.2-1527.10","catch_line":"Recovery on bond","order_by":null,"url":"\/46.2-1527.10\/"},{"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\/"}],"permalink":{"id":231273,"object_type":"law","relational_id":83757,"identifier":"46.2-1527.9","token":"46.2\/IV\/15\/3.2\/46.2-1527.9","url":"\/46.2-1527.9\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-1527.9\/","token":"46.2\/IV\/15\/3.2\/46.2-1527.9","dublin_core":{"Title":"Continuous bonding requirements for Fund nonparticipants","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1527.9","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Applicants for a renewal of a motor vehicle dealer<\/span>’s license may elect to obtain and continuously maintain a bond<\/span> in the amount of $100,000 in lieu of participation in the Motor Vehicle Transaction Recovery Fund<\/span>, provided that such applicants have not been the subject of a claim against a bond<\/span> issued pursuant to \u00a7 46.2-1527.2<\/a>, or against the Fund<\/span> for three consecutive years. The bond<\/span> shall come from a corporate surety<\/span> licensed to do business in the Commonwealth and approved by the Attorney General<\/span> and shall be filed with the Board<\/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. In those cases in which the surety<\/span> of a dealer electing continuous bonding under this section shall be liable pursuant to this section, the maximum liability to one claimant against the surety<\/span> by reason of a claim involving a single transaction shall be limited to $20,000 regardless of the amount of the claim by one claimant, and 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 effect shall in no event exceed $100,000.\n\t\tAn applicant for a renewal of a motor vehicle dealer<\/span>’s license who is a member of a nonprofit organization established under 26 U.S.C. \u00a7 501(c) (6) that provides on behalf of its membership a blanket or umbrella bond<\/span> in the amount of $1 million satisfies the bonding requirements of this section. When posted, a blanket or umbrella bond<\/span> shall be considered a dealer bond<\/span> for the purposes of \u00a7 46.2-1527.10<\/a>. The bond<\/span> shall come from a corporate surety<\/span> licensed to do business in the Commonwealth and approved by the Attorney General<\/span> and shall be filed with the Board<\/span>. In those cases in which the nonprofit organization’s surety<\/span> shall be liable pursuant to \u00a7 46.2-1527.10<\/a>, the maximum liability to one claimant against the surety<\/span> by reason of a claim involving a single transaction shall be limited to $20,000, regardless of the amount of the claim by one claimant, and the aggregate liability of the nonprofit organization’s surety<\/span> to any and all persons for claims against a single dealer shall in no event exceed $100,000. In those cases in which the nonprofit organization’s surety<\/span> shall be liable pursuant to \u00a7 46.2-1527.10<\/a>, the maximum liability 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 $1 million.\n\t\tThe 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. Dealers<\/span> bonded under this article and those salespersons<\/span> employed by such dealers<\/span> shall be exempt from the Fund<\/span> fees specified in \u00a7 46.2-1527.1<\/a>.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCONTINUOUS BONDING REQUIREMENTS FOR FUND NONPARTICIPANTS (\u00a7 46.2-1527.9)\n\nApplicants for a renewal of a motor vehicle dealer’s license may elect to\nobtain and continuously maintain a bond in the amount of $100,000 in lieu of\nparticipation in the Motor Vehicle Transaction Recovery Fund, provided that such\napplicants have not been the subject of a claim against a bond issued pursuant\nto \u00a7 46.2-1527.2, or against the Fund for three consecutive years. The bond\nshall come from a corporate surety licensed to do business in the Commonwealth\nand approved by the Attorney General and shall be filed with the Board. The bond\nshall be conditioned on a statement by the applicant that the applicant will not\npractice fraud, make any fraudulent representation, or violate any provision of\nthis chapter in the conduct of the applicant’s business. In those cases in\nwhich the surety of a dealer electing continuous bonding under this section\nshall be liable pursuant to this section, the maximum liability to one claimant\nagainst the surety by reason of a claim involving a single transaction shall be\nlimited to $20,000 regardless of the amount of the claim by one claimant, and\nthe aggregate 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 effect shall in no event exceed $100,000.\n\t\tAn applicant for a renewal of a motor vehicle dealer’s license who is a\nmember of a nonprofit organization established under 26 U.S.C. \u00a7 501(c) (6)\nthat provides on behalf of its membership a blanket or umbrella bond in the\namount of $1 million satisfies the bonding requirements of this section. When\nposted, a blanket or umbrella bond shall be considered a dealer bond for the\npurposes of \u00a7 46.2-1527.10. The bond shall come from a corporate surety\nlicensed to do business in the Commonwealth and approved by the Attorney General\nand shall be filed with the Board. In those cases in which the nonprofit\norganization’s surety shall be liable pursuant to \u00a7 46.2-1527.10, the\nmaximum liability to one claimant against the surety by reason of a claim\ninvolving a single transaction shall be limited to $20,000, regardless of the\namount of the claim by one claimant, and the aggregate liability of the\nnonprofit organization’s surety to any and all persons for claims against\na single dealer shall in no event exceed $100,000. In those cases in which the\nnonprofit organization’s surety shall be liable pursuant to \u00a7\n46.2-1527.10, the maximum liability to any and all persons, regardless of the\nnumber of claims made against the bond or the number of years the bond remains\nin force shall in no event exceed $1 million.\n\t\tThe Board may, without holding a hearing, suspend the dealer’s license\nduring the period that the dealer does not have a sufficient bond on file.\nDealers bonded under this article and those salespersons employed by such\ndealers shall be exempt from the Fund fees specified in \u00a7 46.2-1527.1.\n\nHISTORY: 2003, c. 331.","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}}