2001 -- H 5962
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LC01421
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2001
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A N A C T
RELATING TO THE POSTING OF BONDS BY MOTOR VEHICLE DEALERS
It is enacted by the General Assembly as follows:
SECTION 1. Section 31-23.2-12 of the General Laws in Chapter 31-23.2 entitled "Tampering with Odometers" is hereby amended to read as follows:
31-23.2-12. Dealers - Bonding. - (a) All motor vehicle dealers of used motor vehicles licensed by this state shall post a bond of not less than fifteen thousand dollars ($15,000) one hundred thousand dollars ($100,000) with the motor vehicle dealers license commission for the purpose of indemnifying a good faith purchaser who suffers any loss occasioned by a violation of the general laws or the rules and regulations of the commission. The bond shall be renewed annually and shall continue in effect for two (2) years after any dealer goes out of business.
(b) All dealers of new motor vehicles licensed by the state of Rhode Island shall post a bond of not less than two hundred thousand dollars ($200,000) with the Rhode Island motor vehicle dealers license commission for the purpose of indemnifying a good faith purchaser who suffers any loss occasioned by a violation of the general laws or the rules and regulations of the commission. The bond shall be renewed annually and shall continue in effect for two (2) years after any new car dealer goes out of business.
SECTION 2. This act shall take effect upon passage.
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LC01421
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO THE POSTING OF BONDS BY MOTOR VEHICLE DEALERS
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This act would require used motor vehicle dealers to post a bond for $100,000 and new motor vehicle dealers to post a bond of $200,000.
This act would take effect upon passage.