Motor Vehicle Transaction Fund (language only)

Item 499 #1s

Language
Page 464, strike lines 30 through 36 and insert:
"Notwithstanding the provisions set forth in § 46.2-1527.1 of the Code of Virginia, the Motor Vehicle Transaction Recovery Fund shall be governed by these policies:
1.  The Board may levy a special assessment on all dealers participating in the Fund in order to maintain the minimum Fund balance as set out in law;
2.  The provisions of § 46.2-1527.1 of the Code of Virginia shall not apply to applicants for an original motor vehicle dealer's license or to applicants for renewal of such licenses where the applicants elect to maintain continuous bonding;
3.  Bonding requirements and recoveries from the Transaction Recovery Fund stipulated in Chapter 15 of Title 46.2 of the Code of Virginia shall apply only to those participating in the Motor Vehicle Transaction Recovery Fund;
4.  Dealers who choose not to participate in the Motor Vehicle Transaction Recovery Fund must maintain continuous bonding in the amount of at least $100,000, and the bond shall come from a corporate surety licensed to do business in Virginia; and
5.  Applicants for original motor vehicle dealer's licenses or for renewal of motor vehicle dealer's licenses who belong to nonprofit organizations established under the United States Code and whose organizations provide on behalf of its membership a blanket bond in the amount of $1,000,000 shall satisfy the bonding requirements."

Explanation
(This amendment sets out the policies governing the Motor Vehicle Transaction Recovery Fund. A companion amendment restores $100,000 the first year to the Fund to carry out the Fund's purposes.)