32-6B-7.1. Pooling of assets to satisfy bond requirements--Right, title, and interest in state--Termination--Notice of payment of claim--Replenishment of pool.
Members of any incorporated automobile dealers association may join together for the limited purpose of forming a pool of assets to satisfy the bond requirements of §32-6B-7. Each pool shall be deposited in escrow or trust with a South Dakota financial institution approved of by the department.
All right, title, and interest in a pool shall be in the state for the benefit of any customer of a participating dealer who suffers any loss caused by the dealer's failure to deliver title, or by fraudulent misrepresentation or by a breach of warranty as to freedom from liens. A pool shall remain the property of the state until the department releases the pool. A pool is not the property of any participating dealer and may not be canceled, assigned, revoked, disbursed, replaced, or allowed to terminate except with department approval. Until a pool has been terminated as provided in this section, no portion of the pool may be assigned for the benefit of creditors, attached, garnished, levied, or executed on, or subject to process issued from any court, except as provided for payment of claims pursuant to this section.
A pool shall continue from year to year and cover for each license period those dealers participating in the pool. The department shall be notified by the escrow agent or trustee of the dealers participating or continuing to participate in a pool prior to the beginning of each license period.
The participating dealers may determine to terminate a pool. Notice of the intent to terminate shall be given to the department at least sixty days prior to the end of a license period. Termination shall be effective four years from the end of the license period notice was received. The escrow agent or trustee, in accordance with this section, shall continue to pay moneys prior to termination to any customer of a participating dealer whose claims arose during any license period prior to notice.
The escrow agent or trustee will notify the department in writing when a claim has been paid from the pool. All claims must be based upon a final judgment of a court of record in this state.
A pool will be established when one hundred thousand dollars of liquid assets are deposited with the escrow agent or trustee. Anytime a pool's balance falls below ninety thousand dollars it shall be replenished by the participating dealers within thirty days. If a pool is not replenished within thirty days, those dealers participating in the pool will be subject to the revocation of their dealer license unless the dealer provides a bond as set forth in §32-6B-7 within fifteen days. After the notice of termination of a pool is received, notwithstanding any provision to the contrary, any dealer participating in the pool during the license period notice is given is subject to the revocation of their dealer license if the pool's balance falls below ninety thousand dollars and is not replenished within thirty days.
The escrow agent or trustee shall have those powers necessary to pay any claim upon the presentation of a final judgment and order of execution of any court record in this state.
The department may adopt rules pursuant to chapter 1-26 to implement this section.
Source: SL 1989, ch 263.
Structure South Dakota Codified Laws
Chapter 06B - Regulation Of Vehicle Dealers
Section 32-6B-1 - Definition of terms.
Section 32-6B-1.1 - Motor home defined.
Section 32-6B-1.2 - Recreational park trailer defined.
Section 32-6B-1.3 - Temporary special events lot defined.
Section 32-6B-1.4 - Temporary supplemental lot defined.
Section 32-6B-2 - Principal place of business defined.
Section 32-6B-3 - Sale on consignment--Contract required--Form.
Section 32-6B-3.1 - Sale on consignment prohibited for vehicle without statement of origin.
Section 32-6B-3.2 - Odometer reading required for consignment or auction--Violation a misdemeanor.
Section 32-6B-3.4 - Auction on consignment of older vehicle titled in another state.
Section 32-6B-3.5 - Auction on consignment of older motorcycle titled in another state.
Section 32-6B-4 - License required--Violation as misdemeanor.
Section 32-6B-4.1 - Brokering prohibited--Violation as misdemeanor.
Section 32-6B-5 - Exemptions from licensing requirements.
Section 32-6B-5.2 - Permit for dealer licensed in another state to sell motorcycles at event.
Section 32-6B-5.3 - Permit for dealer licensed in another state to sell trailers at event.
Section 32-6B-5.5 - Permit for manufacturer to display trailers at event.
Section 32-6B-5.7 - Permit for sponsor to display customized motorcycles at event.
Section 32-6B-6 - Application required--Contents.
Section 32-6B-7.1 - Pooling of assets to satisfy bond requirements--Right, title, and interest in state--Termination--Notice of payment of claim--Replenishment of pool.
Section 32-6B-7.2 - Increase in dealer bond amount--Implementation.
Section 32-6B-8 - Dealer in new vehicles to maintain repair shop.
Section 32-6B-11 - Verification of application by department--Refusal to issue license.
Section 32-6B-12 - Classification of licenses--Issuance of license certificate.
Section 32-6B-12.1 - Low-speed vehicle retail sales.
Section 32-6B-13 - Fees for dealer's licenses--Disposition of fees.
Section 32-6B-15 - Renewal application--Fees.
Section 32-6B-16 - Modification of license certificate--Display of license.
Section 32-6B-17 - Separate licenses--Requirement.
Section 32-6B-18 - Permission to change principal place of business within county.
Section 32-6B-19 - Supplemental licenses for supplemental lots within county--Exemptions.
Section 32-6B-20 - Books, records, and files to be kept--Inspection.
Section 32-6B-21 - Issuance of dealer plates--Numbering--Fees--Return of plates--Misdemeanor.
Section 32-6B-21.1 - Mailing fees.
Section 32-6B-22 - Use of dealer plates--Transfer of plates--Violation as misdemeanor.
Section 32-6B-22.2 - Use of dealer 88 license plates_Transfer of plates.
Section 32-6B-24 - Repossession of dealer plates.
Section 32-6B-26 - Temporary license permit--Provision by dealer.
Section 32-6B-27 - Location of temporary license permit.
Section 32-6B-36.1 - Dealer's car auction agency--Government-owned vehicles.
Section 32-6B-36.4 - Use of agency plates--Transfer of plates--Violation as misdemeanor.
Section 32-6B-37 - Dealer's car auction agency--Records required.
Section 32-6B-37.1 - Public auction to keep records--Inspection by dealer appointed inspectors.
Section 32-6B-38 - Appointment of inspectors--Entry authorized--Complaints.
Section 32-6B-39 - Investigation of dealers--Authorized.
Section 32-6B-41.1 - Cease and desist order for specified violations--Period of effectiveness.
Section 32-6B-41.2 - Cease and desist order--Request for hearing--Procedure.
Section 32-6B-41.3 - Finality of cease and desist order.
Section 32-6B-41.5 - Contest of order--Procedure.
Section 32-6B-41.6 - Finality of order.
Section 32-6B-41.7 - Cease and desist order--Failure to comply--Penalty.
Section 32-6B-42 - Notification of surety of license denial, suspension or revocation.
Section 32-6B-49.1 - Terms or conditions not allowed in franchise agreement.
Section 32-6B-50 - Notice of intention to enter into additional franchise for same line-make.
Section 32-6B-51 - Copies of notice to be sent to franchisees and other interested persons.
Section 32-6B-53 - Hearing on objection--Time and place--Notice--Continuance.
Section 32-6B-54 - Burden of proof at hearing.
Section 32-6B-55 - Hearing upon change of circumstances.
Section 32-6B-56 - Dealer's license not to be issued to franchisee absent compliance by franchisor.
Section 32-6B-56.1 - Trailer franchisees not subject to certain provisions.
Section 32-6B-59 - Right of department to apply for injunction against violation of chapter.
Section 32-6B-60 - Adoption of rules.
Section 32-6B-61 - Schedule of compensation for warranty work.
Section 32-6B-62 - Trailer dealers exempt from certain liability insurance requirements.
Section 32-6B-63 - Regulation of advertising.
Section 32-6B-64 - Advertising defined.
Section 32-6B-66 - In-transit permits for certain trailer manufacturer's trailers.
Section 32-6B-67 - Promulgation of rules for in-transit permits for trailer manufacturer's trailers.
Section 32-6B-69 - Franchise agreement--Change of terms--Dealer rights.
Section 32-6B-69.1 - Audit by franchisor--Limitation--Exception.
Section 32-6B-71 - Vehicle dealership--Death of owner--Succession of interest.
Section 32-6B-72 - Succession--Refusal to honor.
Section 32-6B-74 - Contents of notice.
Section 32-6B-76 - Approval may not be unreasonably withheld.
Section 32-6B-78 - Transferee's qualification as sole issue in objection.
Section 32-6B-79 - Manufacturer defined.
Section 32-6B-80 - Manufacturer or franchisor may not own or operate dealership--Exceptions.
Section 32-6B-81 - Manufacturer or franchisor may own or operate for limited period--Conditions.
Section 32-6B-82 - Exceptions for the purpose of broadening diversity of dealer body.
Section 32-6B-83 - Extension of time period in 32-6B-81--Application--Limit.
Section 32-6B-85 - Civil action for injunction and damages.
Section 32-6B-86 - Applicability of SL 2010, ch 156 amendments.
Section 32-6B-89 - Licensed dealer permitted to take vehicle to adjoining county for demonstration.