With respect to a motor vehicle dealer electing continuous bonding under § 46.2-1527.9, whenever any person is awarded a final judgment in a court of competent jurisdiction in the Commonwealth against the dealer for (i) any loss or damage in connection with the purchase or lease of a motor vehicle by reason of fraud practiced on him or fraudulent representation made to him by the dealer or one of the dealer's salespersons acting within the scope of his employment, (ii) any loss or damage by reason of the violation by the dealer or salesperson of any provision of this chapter in connection with the purchase or lease of a motor vehicle, or (iii) any loss or damage resulting from a breach of an extended service contract, as defined in § 59.1-435, entered into on or after July 1, 2003, the judgment creditor shall have a claim against the dealer bond for such damages as may be awarded such person in final judgment and unpaid by the dealer, and may recover such unpaid damages up to but not exceeding the maximum liability of the surety as set forth in § 46.2-1527.9 from the surety who shall be subrogated to the rights of such person against the dealer or salesperson. The liability of such surety shall be limited to actual damages and attorney fees assessed against the dealer or salesperson as part of the underlying judgment but this section does not authorize the award of attorney fees in the underlying judgment. The liability of such surety shall not include any sums representing interest or punitive damages assessed against the dealer or salesperson.
The dealer's surety shall notify the Board when a claim is made against a dealer's bond, when a claim is paid, and when the bond is cancelled. Such notification shall include the amount of claim and the circumstances surrounding the claim. Notification of cancellation shall include the effective date and reason for cancellation. The bond may be cancelled as to future liability by the dealer's surety upon 30 days' notice to the Board.
2003, c. 331; 2015, cc. 615, 710.
Structure Code of Virginia
Chapter 15 - Motor Vehicle Dealers
§ 46.2-1501. General powers of Commissioner
§ 46.2-1503. Motor Vehicle Dealer Board
§ 46.2-1503.1. Board to employ Executive Director
§ 46.2-1503.2. State Personnel and Public Procurement Acts not applicable
§ 46.2-1503.3. Motor Vehicle Dealer Board Fund; receipts; disbursements
§ 46.2-1503.4. General powers and duties of Board
§ 46.2-1503.5. Biennial report
§ 46.2-1504. Board's powers with respect to hearings under this chapter
§ 46.2-1505. Suit to enjoin violations
§ 46.2-1506.1. Additional training
§ 46.2-1508. Licenses required; penalty
§ 46.2-1508.1. Licensure of certain nonprofit organizations
§ 46.2-1508.2. Display, parking, selling, advertising sale of certain used motor vehicles prohibited
§ 46.2-1509. Application for license or certificate of dealer registration
§ 46.2-1510. Dealers required to have established place of business
§ 46.2-1511. Dealer-operator to have certificate of qualification
§ 46.2-1512. Salesperson to have certificate of qualification
§ 46.2-1513. Continued operation on loss of a dealer-operator holding certificate of qualification
§ 46.2-1515. Location to be specified; display of license; change of location
§ 46.2-1516. Supplemental sales locations
§ 46.2-1517. Changes in form of ownership, make, name
§ 46.2-1518. Display of salesperson's license; notice on termination
§ 46.2-1519. License and registration fees; additional to other licenses and fees required by law
§ 46.2-1520. Collection of license and registration fees; payments from fund
§ 46.2-1521. Issuance, expiration, and renewal of licenses and certificates of registration
§ 46.2-1527.1. Motor Vehicle Transaction Recovery Fund established
§ 46.2-1527.2. Bonding requirements for applicants for an original license
§ 46.2-1527.3. Recovery from Fund, generally
§ 46.2-1527.4. Opportunity to intervene
§ 46.2-1527.5. Limitations on recovery from Fund
§ 46.2-1527.6. Assignment of claimant's rights to the Board; payment of claims
§ 46.2-1527.7. Revocation of license or certificate of registration on payment from the Fund
§ 46.2-1527.8. No waiver by the Board of disciplinary action against licensee or registrant
§ 46.2-1527.9. Continuous bonding requirements for Fund nonparticipants
§ 46.2-1527.10. Recovery on bond
§ 46.2-1527.11. No waiver by the Board of disciplinary action against licensee or registrant
§ 46.2-1528. Examination or audit of licensee; costs
§ 46.2-1529.1. Sales of used motor vehicles by dealers; disclosures; penalty
§ 46.2-1530.1. Purchaser's on-line systems filing fee; collection and remittance
§ 46.2-1530.2. Dealer's manual transaction fee; use in special fund
§ 46.2-1531. Consignment vehicles; contract
§ 46.2-1532. Odometer disclosure; penalty
§ 46.2-1532.1. Certain disclosures required by manufacturers and distributors
§ 46.2-1533.1. Test driving vehicle; residence districts
§ 46.2-1536. Coercing purchaser to provide insurance coverage on motor vehicle; penalty
§ 46.2-1537. Prohibited solicitation and compensation
§ 46.2-1538. Salesman selling for other than his employer prohibited
§ 46.2-1539. Inspection of vehicles required; penalty
§ 46.2-1539.1. Safety inspections or disclosure required before sale of certain trailers; penalty
§ 46.2-1540. Inspections prior to sale not required of certain sellers
§ 46.2-1542. Temporary registration
§ 46.2-1543. Use of old license plates and registration number on another vehicle
§ 46.2-1544. Certificate of title for dealers; penalty
§ 46.2-1545. Termination of business
§ 46.2-1545.1. Watercraft trailer dealers and watercraft trailers
§ 46.2-1545.2. Exclusion of transit buses, all-terrain vehicles, and off-road motorcycles
§ 46.2-1546. Registration of dealers; fees
§ 46.2-1548. Transferable license plates
§ 46.2-1549.1. Dealer's promotional license plates
§ 46.2-1549.2. Special license plate combination
§ 46.2-1550. Use of dealer's and manufacturer's license plates, generally
§ 46.2-1550.1. Use of dealer's license plates and temporary transport plates on certain vehicles
§ 46.2-1550.2. Issuance and use of temporary transport plates, generally
§ 46.2-1552. Use of dealer's license plates on newly purchased vehicles
§ 46.2-1553. Operation without license plate prohibited
§ 46.2-1554. Movement by manufacturer to place of shipment or delivery
§ 46.2-1555. Movement by dealers to salesrooms
§ 46.2-1556. Operation under foreign dealer's license
§ 46.2-1557. Use of certain foreign-registered motor vehicles in driver education programs
§ 46.2-1557.2. Penalties for violations of article; service of summons
§ 46.2-1557.3. Exclusion of transit buses, all-terrain vehicles, and off-road motorcycles
§ 46.2-1557.4. Watercraft trailer dealers and watercraft trailers
§ 46.2-1558. Issuance of temporary license plates to dealers and vehicle owners
§ 46.2-1559. Records to be kept by dealers; inspection
§ 46.2-1560. Application for temporary license plate
§ 46.2-1563. Suspension of right of dealer to issue
§ 46.2-1564. Plates to be destroyed on expiration
§ 46.2-1565. When plates to expire; refunds or credit
§ 46.2-1566. Filing of franchises
§ 46.2-1567. Exemption of franchises from Retail Franchising Act
§ 46.2-1568.1. Discrimination by manufacturers or distributors prohibited
§ 46.2-1569.1. Manufacturer or distributor right of first refusal
§ 46.2-1570. Discontinuation of distributors
§ 46.2-1571. Recall, warranty, maintenance and sales incentive obligations
§ 46.2-1572. Operation of dealership by manufacturer
§ 46.2-1572.1. Ownership of service facilities
§ 46.2-1572.2. Mediation of disputes
§ 46.2-1572.3. Waiver prohibited
§ 46.2-1572.4. Manufacturer or distributor use of performance standards
§ 46.2-1573. Hearings and other remedies; civil penalties
§ 46.2-1573.01. Recovery of attorney's fees
§ 46.2-1573.1. Late model and factory repurchase franchises
§ 46.2-1573.2. Filing of franchises
§ 46.2-1573.3. Exemption of franchises from Retail Franchising Act
§ 46.2-1573.6. Manufacturer or distributor right of first refusal
§ 46.2-1573.7. Discontinuation of distributors
§ 46.2-1573.8. Warranty obligations
§ 46.2-1573.9. Operation of dealership by manufacturer
§ 46.2-1573.10. Ownership of service facilities
§ 46.2-1573.11. Hearings and other remedies; civil penalties
§ 46.2-1573.12. Late model and factory repurchase franchises
§ 46.2-1573.13. Watercraft trailer dealers and watercraft trailers
§ 46.2-1573.14. Trailer dealers filing of franchises
§ 46.2-1573.15. Exemption of franchises from Retail Franchising Act
§ 46.2-1573.18. Manufacturer or distributor right of first refusal
§ 46.2-1573.19. Discontinuation of distributors
§ 46.2-1573.20. Warranty obligations
§ 46.2-1573.21. Operation of dealership by manufacturer
§ 46.2-1573.22. Ownership of service facilities
§ 46.2-1573.23. Hearings and other remedies; civil penalties
§ 46.2-1573.24. Late model and factory repurchase franchises
§ 46.2-1573.25. Motorcycle dealers filing of franchises
§ 46.2-1573.26. Exemption of franchises from Retail Franchising Act
§ 46.2-1573.29. When discontinuation, cancellation, or nonrenewal of franchise unfair
§ 46.2-1573.31. Manufacturer or distributor right of first refusal
§ 46.2-1573.32. Discontinuation of distributors
§ 46.2-1573.33. Warranty obligations
§ 46.2-1573.34. Operation of dealership by manufacturer
§ 46.2-1573.35. Ownership of service facilities
§ 46.2-1573.36. Hearings and other remedies; civil penalties
§ 46.2-1573.37. Late model and factory repurchase franchises
§ 46.2-1574. Acts of officers, directors, partners, and salespersons
§ 46.2-1577. Appeals from actions of the Board
§ 46.2-1578. Appeals to Court of Appeals; bond
§ 46.2-1579. Equitable remedies not impaired
§ 46.2-1581. Regulated advertising practices
§ 46.2-1582. Enforcement; regulations
§ 46.2-1584. Recertification Notice
§ 46.2-1585. Recertification schedule
§ 46.2-1586. Recertification requirements
§ 46.2-1587. Course provider approval