                                 CODE OF VIRGINIA

MOTOR VEHICLE TRANSACTION RECOVERY FUND ESTABLISHED (§ 46.2-1527.1)

A. All fees in this article shall be deposited in the Motor Vehicle Transaction
Recovery Fund, referred to in this article as &#8220;the Fund.&#8221; The Fund
shall be a special fund in the state treasury to pay claims against the Fund and
for no other purpose, provided that any such payment does not result in a
negative balance of the Fund, except the Board may expend moneys for the
administration of this article up to the maximum amount authorized for consumer
assistance in the general appropriation act, provided the amount expended for
administration does not result in a balance of the Fund of less than $250,000.
The Fund shall be used to satisfy unpaid judgments, as provided for in &#xA7;
46.2-1527.3. Any interest income shall accrue to the Fund. The Board shall
maintain an accurate record of all transactions involving the Fund. The Board
may levy a special assessment on all dealers participating in the Fund to pay
claims against the Fund and to maintain a minimum Fund balance that is in its
judgment adequate. The Board may choose to await a positive balance in the Fund
to pay claims ready for payment in chronological order, provided such claims do
not go unpaid for more than 60 days.

B. Every applicant renewing a motor vehicle dealer&#8217;s license shall pay, in
addition to other license fees, an annual Fund fee of $100, and every applicant
for a motor vehicle salesperson&#8217;s license shall pay, in addition to other
license fees, an annual Fund fee of $10, prior to license issue. However, annual
Fund renewal fees from salespersons shall not exceed $100 per year from an
individual dealer. These fees shall be deposited in the Motor Vehicle
Transaction Recovery Fund. Any salesperson licensed by the Department and having
never paid such a fee prior to July 1, 2015, shall be exempt from this
subsection.

C. Applicants for an original motor vehicle dealer&#8217;s license shall pay an
annual Fund fee of $350 each year for three consecutive years. During this
period, the $350 Fund fee will take the place of the annual $100 Fund fee.

D. In addition to the $350 annual fee, applicants for an original dealer&#8217;s
license shall have a $50,000 bond pursuant to &#xA7; 46.2-1527.2 for three
consecutive years. Only those renewing licensees who have not been the subject
of a claim against their bond or against the Fund for three consecutive years
shall pay the annual $100 fee and will no longer be required to pay the $350
annual fee or hold the $50,000 bond. Any salesperson licensed by the Department
and having never paid such fee prior to July 1, 2015, shall be exempt from this
subsection.

E. In addition to other license fees, applicants for an original Certificate of
Dealer Registration or its renewal shall pay a Fund fee of $60.

F. The Board may suspend or reinstate collection of Fund fees.

G. The provisions of this section shall not apply to manufactured home dealers
or nonprofit organizations issued certificates pursuant to subsection B of
&#xA7; 46.2-1508.1.

H. The provisions of this section shall not apply to applicants for the renewal
of a motor vehicle dealer&#8217;s license where such applicants have not been
the subject of a claim against a bond issued pursuant to &#xA7; 46.2-1527.2 or
against the Fund for three years and such applicants elect to maintain
continuous bonding pursuant to Article 3.2 (&#xA7; 46.2-1527.9 et seq.). Such
applicants shall not participate in the Fund and shall be exempt from the
payment of any Fund fees.

I. The provisions of this article shall not apply to any recreational vehicle,
trailer, or motorcycle dealer licensed by the Department prior to July 1, 2015.

HISTORY: 1994, cc. 478, 671; 1995, cc. 767, 816; 1998, c. 325; 2000, c. 180;
2003, c. 331; 2006, c. 172; 2011, c. 407; 2012, cc. 10, 119; 2014, c. 695; 2015,
c. 615.