46.2-1527.10 - Recovery on bond. - Virginia Statutes

§ 46.2-1527.10. Recovery on bond.

With respect to a motor vehicle dealer electing continuous bonding under §46.2-1527.9, whenever any person is awarded a final judgement in a court ofcompetent jurisdiction in the Commonwealth against the dealer for (i) anyloss or damage in connection with the purchase or lease of a motor vehicle byreason of fraud practiced on him or fraudulent representation made to him bythe dealer or one of the dealer's salespersons acting within the scope of hisemployment, (ii) any loss or damage by reason of the violation by the dealeror salesperson of any provision of this chapter in connection with thepurchase or lease of a motor vehicle, or (iii) any loss or damage resultingfrom a breach of an extended service contract, as defined in § 59.1-435,entered into on or after July 1, 2003, the judgement creditor shall have aclaim against the dealer bond for such damages as may be awarded such personin final judgement and unpaid by the dealer, and may recover such unpaiddamages up to but not exceeding the maximum liability of the surety as setforth in § 46.2-1527.9 from the surety who shall be subrogated to the rightsof such person against the dealer or salesperson. The liability of suchsurety shall be limited to actual damages and attorneys' fees assessedagainst the dealer or salesperson as part of the underlying judgement butthis section does not authorize the award of attorneys' fees in theunderlying judgement. The liability of such surety shall not include any sumsrepresenting interest or punitive or exemplary damages assessed against thedealer or salesperson.

The dealer's surety shall notify the Board when a claim is made against adealer's bond, when a claim is paid, and when the bond is cancelled. Suchnotification shall include the amount of claim and the circumstancessurrounding the claim. Notification of cancellation shall include theeffective date and reason for cancellation. The bond may be cancelled as tofuture liability by the dealer's surety upon 30 days' notice to the Board.

(2003, c. 331.)