On March 17, 2015, Idaho Governor Butch Otter signed Senate Bill 1015 into law approving of an increased surety bond amount for wholesale vehicle dealers.
Formerly, wholesale auto dealers were responsible for posting a surety bond in the amount of $20,000. Prior to the amendments resulting from the enactment of this bill, wholesale dealers used to fall under the same bonding category as regular auto dealers. Now, wholesale dealers must post a bond with an increased amount of $40,000. All other auto dealers should still follow the normal requirements by posting a bond with a $20,000 value as well as motorcycle, motorbike, all-terrain vehicle, and utility vehicle dealers should post a bond in the previously required amount of $10,000.
Before any wholesale dealer can obtain a license issued through the state, they must show proof of having a surety bond in the adjusted amount as a form of financial security for consumers against fraudulent behavior. By posting a bond, dealers are guaranteeing the performance of honest and ethical services that remain in compliance with Chapter 16 of the Idaho Code. All dealers must also abide by all federal motor vehicle safety standards in order to avoid violating bond terms and possible legal conflictions, as well.
It is considered unlawful to act as a wholesale vehicle dealer in Idaho without being able to furnish a certified copy of a surety bond at the time the principal is conducting business. If it is discovered that individuals are pursuing wholesale vehicle dealing without a surety bond in their possession, the possibility of license revocation can result at any time.
In addition to amending the bond amount, SB 1015 also holds licensed wholesale vehicle dealers exempt from participating in the Idaho consumer asset recovery (ICAR) fund. This means that wholesale auto dealers are no longer required to pay the ICAR annual fee, which is currently set at $300. More information on the state’s recovery fund can be found in sections 49-1608B through 49-1608F of the Idaho Code.
This bill becomes effective beginning July 1, 2015. If you know that you need to post a surety bond of the increased amount in order to continue conducting business legally in the state of Idaho, contact one of our surety agents today to begin our simple bonding process. Our experts are aware of this bond increase and are standing by eager to assist all your bonding needs as well as answer any questions you may have regarding these legislation updates. Give SuretyBonds.com a call today at 1 (800) 308-4358 or submit an online bond request form by clicking here. We are looking forward to working with you!