Sec 28-4362. Application; fee; bond

Applications shall be accompanied by:

1. The filing fees prescribed in section 28-4302, and each licensee shall pay the annual license fee prescribed in section 28-4302.

2. A bond that:

(a) Is in a form to be approved by the director.

(b) Is in an amount prescribed by the director of at least twenty thousand dollars for an automotive recycler's license and not more than one hundred thousand dollars for all other licenses.

(c) Is executed by a surety company authorized to transact business in this state as surety on the bond with the applicant as principal obligor on the bond and the state as obligee.

(d) Is cancellable only on at least sixty days' prior notice to the director.

(e) Inures to the benefit of a person who suffers loss because of either:

(i) Nonpayment by the dealer of customer prepaid title, registration or other related fees or taxes.

(ii) The automotive recycler's or the dealer's failure to deliver in conjunction with the sale of a vehicle a valid vehicle title certificate free and clear of any prior owner's interests and all liens except a lien created by or expressly assumed in writing by the buyer of the vehicle.

3. A copy of the dealer's current transaction privilege tax license.