Bond or letter of credit requirements
- • action against dealer and surety or issuer
(1) A bond or letter of credit required to qualify for issuance or renewal of a manufactured structure dealer license under ORS 446.691 (Issuance of dealer license) or 446.696 (Renewal of dealer license) or a temporary manufactured structure dealer license under ORS 446.701 (Issuance of temporary manufactured structure dealer license) must comply with the following requirements:
(a) The bond must have a corporate surety licensed to do business within this state. A letter of credit must be an irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008 (Additional definitions for Bank Act).
(b) The bond or letter of credit must:
(A) Be executed to the State of Oregon;
(B) Be in the sum of $40,000 for each year the license is valid;
(C) Be in a form approved by the Attorney General;
(D) Be conditioned that the dealer will conduct the manufactured structure dealership without fraud or fraudulent representation and without violating any statute or rule relating to manufactured structure dealers, manufactured structure dealerships, transfers of interests in manufactured structures, alteration of manufactured structures or moving manufactured structures;
(E) Be separate from any bond or letter of credit covering business activities other than dealing in manufactured structures; and
(F) Be filed and held in the office of the Department of Consumer and Business Services.
(2) The surety or institution shall notify the department if the bond or letter of credit is canceled for any reason. The surety or institution continues to be liable under the bond or letter of credit until the department receives the notice required by this subsection, or until the cancellation date specified in the notice, whichever is later.
(3) If the license of a manufactured structure dealer is not renewed or is voluntarily or involuntarily canceled, the surety on the bond and the issuer of the letter of credit are relieved from liability that accrues after the department cancels the license.
(4) The manufactured structure dealer shall purchase a bond or letter of credit under this section annually on or before each anniversary of the issuance of the dealer’s license.
(5) A person has a right of action against a manufactured structure dealer, against the surety on the dealer’s bond and the issuer of a letter of credit if the person suffers any loss or damage by reason of the manufactured structure dealer’s fraud, fraudulent representations or violations of statutes relating to:
(a) Transfer of interests in manufactured structures;
(b) Moving manufactured structures;
(c) The alteration of manufactured structures; or
(d) The regulation of manufactured structure dealers and manufactured structure dealerships.
(6) Notwithstanding subsection (5) of this section, the maximum amount available under a bond or letter of credit described in this section for the payment of claims by persons other than retail customers of the dealer is $20,000. [2003 c.655 §33; 2003 c.655 §34]
Note: See note under 446.661 (Definitions for ORS 446.666 to 446.756).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.