(a) The bond shall have a corporate surety licensed to do business within this state. A letter of credit shall be an irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008. The surety or institution shall notify the Department of Transportation if the bond or letter of credit is canceled for any reason. The surety or institution shall continue to be liable under the bond or letter of credit until the department receives the notice required by this paragraph, or until the cancellation date specified in the notice, whichever is later.
(b) The bond or letter of credit shall be executed to the State of Oregon.
(c) Except as otherwise provided in this paragraph, the bond or letter of credit shall be in the following sum:
(A) If the person holds a certificate to be a dealer exclusively in motorcycles, mopeds, Class I all-terrain vehicles or snowmobiles or any combination of those vehicles, the bond or letter of credit shall be for $10,000.
(B) Except as provided in subparagraph (A) of this paragraph, if the applicant is seeking a certificate to be a vehicle dealer, the bond or letter of credit shall be for $50,000 for each year the certificate is valid.
(d) The bond or letter of credit described in this subsection shall be approved as to form by the Attorney General.
(e) The bond or letter of credit must be conditioned that the person issued the certificate shall conduct business as a vehicle dealer without fraud or fraudulent representation and without violating any provisions of the vehicle code relating to vehicle registration, vehicle permits, the transfer or alteration of vehicles or the regulation of vehicle dealers.
(f) The bond or letter of credit must be filed and held in the office of the department.
(g) The vehicle dealer shall purchase a bond or letter of credit under this subsection annually on or before each anniversary of the issuance of the vehicle dealer’s certificate.
(2) Any person shall have a right of action against a vehicle dealer, against the surety on the vehicle dealer’s bond and against the letter of credit in the person’s own name if the person suffers any loss or damage by reason of the vehicle dealer’s fraud, fraudulent representations or violations of provisions of the vehicle code relating to:
(a) Vehicle registration;
(b) Vehicle permits;
(c) The transfer or alteration of vehicles; or
(d) The regulation of vehicle dealers.
(3) Notwithstanding subsection (2) of this section, the maximum amount available under a bond or letter of credit described in subsection (1)(c)(B) of this section for the payment of claims to persons other than retail customers of the dealer is $10,000.
(4) Notwithstanding subsection (2) of this section, a person other than a retail customer of the vehicle dealer may not make a claim under subsection (2) of this section against the surety on the vehicle dealer’s bond, or against the vehicle dealer’s letter of credit, if the vehicle dealer holds a vehicle dealer certificate to deal exclusively in motorcycles, mopeds, Class I all-terrain vehicles or snowmobiles or any combination of those vehicles.
(5) If the certificate of a vehicle dealer is not renewed or is voluntarily or involuntarily canceled, the sureties on the bond and the issuer of the letter of credit are relieved from liability that accrues after the department cancels the certificate. [1983 c.338 §794; 1985 c.16 §392; 1985 c.598 §6; 1987 c.261 §7; 1989 c.434 §2; 1991 c.331 §145; 1997 c.631 §556; 1999 c.593 §§2,5; 2001 c.141 §§2,3,4,5; 2017 c.530 §1]
Structure 2021 Oregon Revised Statutes
Volume : 19 - Utilities, Vehicle Code, Watercraft, Aviation
Chapter 822 - Regulation of Vehicle Related Businesses
Section 822.005 - Acting as vehicle dealer without certificate; penalty.
Section 822.009 - Civil penalties for violations of statutes or rules.
Section 822.015 - Exemptions from vehicle dealer certification requirement; rules.
Section 822.020 - Issuance of certificate; fee.
Section 822.022 - Restrictions on issuing certificates.
Section 822.025 - Application contents.
Section 822.027 - Education requirements for vehicle dealers.
Section 822.030 - Bond or letter of credit requirements; rights of action.
Section 822.033 - Requirements for certificate of insurance; exemptions.
Section 822.042 - Procedures for transfer of interest in vehicle by vehicle dealer.
Section 822.043 - Dealer preparation and submission of documents; privilege tax.
Section 822.045 - Vehicle dealer offenses; penalties.
Section 822.047 - Brokerage services.
Section 822.048 - Remedy for failure to submit title.
Section 822.050 - Revocation, cancellation or suspension of certificate.
Section 822.055 - Failure to return revoked, canceled or suspended certificate; penalty.
Section 822.060 - Illegal consignment practices; exception; penalty; rules.
Section 822.065 - Violation of consigned vehicle transfer; penalty.
Section 822.070 - Conducting illegal vehicle rebuilding business; penalty.
Section 822.080 - Procedures for civil penalties imposed under ORS 822.009; disposition of moneys.
Section 822.082 - "Recreational vehicle service facility" defined; display of location.
Section 822.083 - "Show" defined; conditions for participation in show.
Section 822.084 - Show license; fee; rules.
Section 822.086 - New recreational vehicle sales; warranty statement.
Section 822.090 - Unlawful subleasing of motor vehicle; penalty.
Section 822.093 - Sale of vehicles involving possessory liens; records; rules; penalty.
Section 822.100 - Conducting a motor vehicle dismantling business without a certificate; penalties.
Section 822.105 - Exemption from certificate requirement.
Section 822.110 - Dismantler certificate; refusal to issue; duplicate certificate.
Section 822.115 - Application contents.
Section 822.130 - Inspection of books, records, inventory and premises.
Section 822.133 - Requirements of dismantler operating motor vehicle dismantling business.
Section 822.135 - Improperly conducting motor vehicle dismantling business; penalty.
Section 822.137 - Dismantler conduct resulting in civil penalty; rules.
Section 822.140 - Local government approval requirements.
Section 822.145 - Imposition of sanctions; rules.
Section 822.200 - Operating illegal towing business; exceptions; penalties.
Section 822.205 - Certificate; qualifications; fee.
Section 822.210 - Privileges granted by certificate; duration; renewal; regulation of holder.
Section 822.213 - Transporting property for hire.
Section 822.217 - Proportional registration for tow vehicles; rules.
Section 822.218 - Cancellation of identification device for proportionally registered tow vehicle.
Section 822.220 - Authorization to obstruct traffic; failure to take precautions; penalty.
Section 822.225 - Failure to remove injurious substance; penalty.
Section 822.230 - City or county regulation of towing businesses.
Section 822.235 - Recovery after theft.
Section 822.250 - State Board of Towing; membership; terms of office; compensation and expenses.
Section 822.255 - Chair and vice chair; quorum; meetings.
Section 822.260 - Administrative officer for board; subordinate officers and employees.
Section 822.265 - Rulemaking authority; board seal.
Section 822.270 - State Board of Towing Account.
Section 822.285 - Additional powers of board; fees; rules.
Section 822.300 - Acting as vehicle transporter without certificate; exemptions; penalty.
Section 822.305 - Exemptions from vehicle transporter certification requirement.
Section 822.315 - Improper use of vehicle transporter plate; penalty.
Section 822.325 - Failure to return revoked or suspended certificate; penalty.
Section 822.500 - Operating commercial driver training school without certificate; rules; penalty.
Section 822.510 - Proof of insurance; requirements; exception.
Section 822.530 - Certificate; issuance; suspension or revocation; duration; fee; rules.
Section 822.535 - Failure to return revoked or suspended certificate; penalty.
Section 822.600 - Failure of garage to report accident or bullet contact; penalty.
Section 822.605 - False swearing relating to regulation of vehicle related businesses; penalty.
Section 822.700 - Certification fees.
Section 822.990 - Civil penalties for violations of ORS 822.500 and 822.525.
Section 822.992 - Civil penalties for violations related to dismantlers.
Section 822.995 - Civil penalties for violations related to towing; factors; rules.