SOURCE: Page 11, line 9; (03)MO040501.11. -->
Page 11, between lines 9 and 10, begin a new paragraph and insert:
SOURCE: IC 9-23-2-2.5; (03)MO040501.23. -->
"SECTION 23. IC 9-23-2-2.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 2.5. (a) An application to be
licensed as a dealer or a wholesale dealer, other than an application
made by a dealer who is a franchisee selling new motor vehicles,
must be made in the manner required under section 2 of this
chapter and must be accompanied by:
(1) a properly executed bond; or
(2) a renewal certificate for a bond.
(b) The term of a bond must correspond to the period of
issuance for the license as set forth in section 8 of this chapter. If a
renewal certificate is used, the bond is considered to be extended
in force for each succeeding year in the same amount and with the
same effect as an original bond.
(c) The bond must:
(1) be in the sum of fifty thousand dollars ($50,000);
(2) have good and sufficient surety;
(3) be approved by the bureau; and
(4) indemnify or reimburse a purchaser, seller, or financier
for monetary loss caused by:
(A) fraud;
(B) breach of contract;
(C) failure to comply with IC 9-17-3-3; or
(D) suspension or revocation of the license for the reasons
set forth in section 14(a)(1) through 14(a)(6) of this
chapter, whether the action or inaction was on the part of:
(i) the dealer;
(ii) the wholesale dealer; or
(iii) an employee, an agent, or a salesperson of the dealer
or wholesale dealer.
(d) The total liability of the surety may not exceed the sum of the
bond.
(e) The surety shall make indemnification or reimbursement for
a monetary loss:
(1) after judgment based on the monetary loss set forth in
subsection (c)(4) has been entered by a court; or
(2) after the license of the dealer or the wholesale dealer has
been suspended or revoked by the bureau under section 14 of
this chapter.
(f) The surety:
(1) may cancel the bond after giving at least thirty (30) days
notice in writing to the bureau and to the dealer or wholesale
dealer; and
(2) is not liable thereafter for monetary loss resulting from a
monetary loss as set forth in subsection (c)(4).".
SOURCE: Page 11, line 40; (03)MO040501.11. -->
Page 11, between lines 40 and 41, begin a new paragraph and insert:
SOURCE: IC 9-23-2-14; (03)MO040501.26. -->
"SECTION 26. IC 9-23-2-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14. (a) A license issued
under this chapter may be denied, suspended, or revoked for any of the
following:
(1) Material misrepresentation in the application for the license
or other information filed with the commissioner.
(2) Lack of fitness under the standards set forth in this article or
a rule adopted by the commissioner under this article.
(3) Willful failure to comply with the provisions of this article or
a rule adopted by the commissioner under this article.
(4) Willful violation of a federal or state law relating to the sale,
distribution, financing, or insuring of motor vehicles.
(5) Engaging in an unfair practice as set forth in this article or a
rule adopted by the commissioner under this article.
(6) Violating IC 23-2-2.7.
(7) Cancellation of a required bond as set forth in section
2.5(f) of this chapter.
(b) Except as provided in subsection (d), the procedures set forth in
IC 4-21.5 govern the denial, suspension, or revocation of a license and
a judicial review. However, if the bureau denies, suspends, or revokes
a license issued or sought under this article, the affected person may
file an action in the circuit court of Marion County, Indiana, or the
circuit court of the Indiana county in which the person's principal place
of business is located, seeking a judicial determination as to whether
the action is proper. An action may not take effect until thirty (30) days
after the commissioner's determination has been made and a notice of
the determination served upon the affected person. The filing of an
action as described in this section within the thirty (30) day period is
an automatic stay of the commissioner's determination.
(c) Revocation or suspension of a license of a manufacturer, a
distributor, a factory branch, a distributor branch, a dealer, or an
automobile auctioneer may be limited to one (1) or more locations, to
one (1) or more defined areas, or only to certain aspects of the business.
(d) A license may be denied, suspended, or revoked for violating
IC 9-19-1. IC 4-21.5-4 governs the denial, suspension, or revocation of
a license under this subsection. The bureau may issue a temporary
order to enforce this subsection.".
Renumber all SECTIONS consecutively.
(Reference is to SB 405 as printed February 28, 2003.)
________________________________________
MO040501/DI 96 2003