(1)At the time of filing the certificate and application for a dealer’s license, the Department of Transportation shall require the dealer to file with the department, in a form prepared by the department, a bond executed by the dealer as principal with a corporate surety authorized to transact business in this state. The bond shall be payable to the State of Oregon conditioned upon performance of all the requirements of ORS 319.010 (Definitions for ORS 319.010 to 319.430) to 319.430 (Savings clause), including the payment of all taxes, penalties and other obligations of the dealer arising out of ORS 319.010 (Definitions for ORS 319.010 to 319.430) to 319.430 (Savings clause).
(2)Except as provided in ORS 319.051 (Conditions for reduced bond amount), 319.052 (Conditions for increased bond amount) and 319.053 (Amount of bond when twice license tax is less than $1,000), a bond under subsection (1) of this section shall be in an amount that is equivalent to twice the dealer’s estimated monthly license tax, as determined by the department, or $250,000, whichever is less.
(3)The department may reduce or increase the required amount for a bond as provided in ORS 319.051 (Conditions for reduced bond amount) and 319.052 (Conditions for increased bond amount).
(4)A bond given in connection with ORS 319.010 (Definitions for ORS 319.010 to 319.430) to 319.430 (Savings clause) is a continuing instrument and covers any and all periods of time including the first and all subsequent periods for which a license may be granted in consequence of the giving of the bond. The liability of the surety on the bond for the aggregate of all claims that arise under the bond may not exceed the amount of the penalty of the bond. No recoveries on any bond or any execution of any new bond may invalidate any bond, but the total recoveries under any one bond may not exceed the amount of the bond.
(5)A dealer required under this section to obtain a bond may demand by proper petition a hearing on the necessity of the bond or the reasonableness of the amount required. The department shall grant the petition for a hearing and shall hold the hearing within 10 days after the demand for the hearing. The decision of the department becomes final 10 days after service of the order on the dealer. The hearing is not subject to the requirements of ORS 183.413 (Notice to parties before hearing of rights and procedure) to 183.470 (Orders in contested cases). [Amended by 1967 c.359 §690; 1999 c.769 §12; 2003 c.52 §1]
Section 319.050 — Performance bond; hearing,