                                 CODE OF VIRGINIA

LIMITATIONS ON RECOVERY FROM FUND (§ 46.2-1527.5)

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 § 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&#8217;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.
		The 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 §
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.
		However, aggregate claims against the Fund under § 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&#8217;s bond and then only after the
dealer&#8217;s bond has been exhausted.
		If 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.
		However, claims against motor vehicle dealers and salespersons participating
in the Motor Vehicle Transaction Recovery Fund pursuant to § 46.2-1527.2 shall
be prorated when the aggregate exceeds $50,000. Claims shall be prorated only
after the dealer&#8217;s $50,000 bond has been exhausted.
		On 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.
		Excluded 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.
		If 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.

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.