ORS 822.030
Bond or letter of credit requirements

  • rights of action

(1)

A bond or letter of credit required to qualify for a vehicle dealer certificate under ORS 822.020 (Issuance of certificate) or to qualify for renewal of a certificate under ORS 822.040 (Privileges granted by certificate) must comply with all of the following:

(a)

The bond shall have a corporate surety licensed to do business within this state. A letter of credit shall be an irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008 (Additional definitions for Bank Act). The surety or institution shall notify the Department of Transportation if the bond or letter of credit is canceled for any reason. The surety or institution shall continue to be liable under the bond or letter of credit until the department receives the notice required by this paragraph, or until the cancellation date specified in the notice, whichever is later.

(b)

The bond or letter of credit shall be executed to the State of Oregon.

(c)

Except as otherwise provided in this paragraph, the bond or letter of credit shall be in the following sum:

(A)

If the person holds a certificate to be a dealer exclusively in motorcycles, mopeds, Class I all-terrain vehicles or snowmobiles or any combination of those vehicles, the bond or letter of credit shall be for $10,000.

(B)

Except as provided in subparagraph (A) of this paragraph, if the applicant is seeking a certificate to be a vehicle dealer, the bond or letter of credit shall be for $50,000 for each year the certificate is valid.

(d)

The bond or letter of credit described in this subsection shall be approved as to form by the Attorney General.

(e)

The bond or letter of credit must be conditioned that the person issued the certificate shall conduct business as a vehicle dealer without fraud or fraudulent representation and without violating any provisions of the vehicle code relating to vehicle registration, vehicle permits, the transfer or alteration of vehicles or the regulation of vehicle dealers.

(f)

The bond or letter of credit must be filed and held in the office of the department.

(g)

The vehicle dealer shall purchase a bond or letter of credit under this subsection annually on or before each anniversary of the issuance of the vehicle dealer’s certificate.

(2)

Any person shall have a right of action against a vehicle dealer, against the surety on the vehicle dealer’s bond and against the letter of credit in the person’s own name if the person suffers any loss or damage by reason of the vehicle dealer’s fraud, fraudulent representations or violations of provisions of the vehicle code relating to:

(a)

Vehicle registration;

(b)

Vehicle permits;

(c)

The transfer or alteration of vehicles; or

(d)

The regulation of vehicle dealers.

(3)

Notwithstanding subsection (2) of this section, the maximum amount available under a bond or letter of credit described in subsection (1)(c)(B) of this section for the payment of claims to persons other than retail customers of the dealer is $10,000.

(4)

Notwithstanding subsection (2) of this section, a person other than a retail customer of the vehicle dealer may not make a claim under subsection (2) of this section against the surety on the vehicle dealer’s bond, or against the vehicle dealer’s letter of credit, if the vehicle dealer holds a vehicle dealer certificate to deal exclusively in motorcycles, mopeds, Class I all-terrain vehicles or snowmobiles or any combination of those vehicles.

(5)

If the certificate of a vehicle dealer is not renewed or is voluntarily or involuntarily canceled, the sureties on the bond and the issuer of the letter of credit are relieved from liability that accrues after the department cancels the certificate. [1983 c.338 §794; 1985 c.16 §392; 1985 c.598 §6; 1987 c.261 §7; 1989 c.434 §2; 1991 c.331 §145; 1997 c.631 §556; 1999 c.593 §§2,5; 2001 c.141 §§2,3,4,5; 2017 c.530 §1]

Source: Section 822.030 — Bond or letter of credit requirements; rights of action, https://www.­oregonlegislature.­gov/bills_laws/ors/ors822.­html.

Notes of Decisions

Under former similar statute

Surety on automobile dealer’s bond is not liable for punitive damages adjudged against dealer based on dealer’s fraud. Butler v. United Pac. Ins. Co., 265 Or 473, 509 P2d 1184 (1973)

Where automobile was stolen after purchase, buyer was unable to recover from his insurer for such theft because he could not produce valid title to car, and seller did not have title at time of sale in violation of [former] ORS 481.315 and failed to transfer title to buyer, buyer had “suffered loss” from seller’s violation within meaning of this section and was thus entitled to damages. Chamberlain v. Jim Fisher Motors, Inc., 282 Or 229, 578 P2d 1225 (1978)

Attorney fees and punitive damages were not properly awarded under this section. Chamberlain v. Jim Fisher Motors, Inc., 282 Or 229, 578 P2d 1225 (1978)

This section contemplates yearly and separate bond obligation for each year of licensure. General Electric Credit Corp. v. United Pac. Ins. Co., 80 Or App 129, 722 P2d 15 (1986), Sup Ct review denied

822.005
Acting as vehicle dealer without certificate 822.007
Injunction against person acting as vehicle dealer in violation of vehicle code or rule 822.009
Civil penalties for violations of statutes or rules 822.015
Exemptions from vehicle dealer certification requirement 822.020
Issuance of certificate 822.022
Restrictions on issuing certificates 822.025
Application contents 822.027
Education requirements for vehicle dealers 822.030
Bond or letter of credit requirements 822.033
Requirements for certificate of insurance 822.035
Investigation of application 822.040
Privileges granted by certificate 822.042
Procedures for transfer of interest in vehicle by vehicle dealer 822.043
Dealer preparation and submission of documents 822.045
Vehicle dealer offenses 822.046
Vehicle dealer’s duty to inform potential buyer if vehicle used for manufacture of controlled substances 822.047
Brokerage services 822.048
Remedy for failure to submit title 822.050
Revocation, cancellation or suspension of certificate 822.055
Failure to return revoked, canceled or suspended certificate 822.060
Illegal consignment practices 822.065
Violation of consigned vehicle transfer 822.070
Conducting illegal vehicle rebuilding business 822.080
Procedures for civil penalties imposed under ORS 822.009 822.082
“Recreational vehicle service facility” defined 822.083
“Show” defined 822.084
Show license 822.086
New recreational vehicle sales 822.090
Unlawful subleasing of motor vehicle 822.093
Sale of vehicles involving possessory liens 822.094
Transfer by lien claimant 822.100
Conducting a motor vehicle dismantling business without a certificate 822.105
Exemption from certificate requirement 822.110
Dismantler certificate 822.115
Application contents 822.120
Bond or letter of credit requirements 822.125
Privileges granted by certificate 822.130
Inspection of books, records, inventory and premises 822.133
Requirements of dismantler operating motor vehicle dismantling business 822.135
Improperly conducting motor vehicle dismantling business 822.137
Dismantler conduct resulting in civil penalty 822.140
Local government approval requirements 822.145
Imposition of sanctions 822.150
Failure to return revoked, canceled or suspended certificate or identification card 822.200
Operating illegal towing business 822.205
Certificate 822.210
Privileges granted by certificate 822.213
Transporting property for hire 822.215
Grounds for denial, suspension, revocation or refusal of certificate 822.217
Proportional registration for tow vehicles 822.218
Cancellation of identification device for proportionally registered tow vehicle 822.220
Authorization to obstruct traffic 822.225
Failure to remove injurious substance 822.230
City or county regulation of towing businesses 822.235
Recovery after theft 822.250
State Board of Towing 822.255
Chair and vice chair 822.260
Administrative officer for board 822.265
Rulemaking authority 822.270
State Board of Towing Account 822.275
Administration of oaths 822.280
Denial, suspension, revocation or refusal of towing business certificate 822.285
Additional powers of board 822.290
Denial of participation on Department of State Police tow rotation 822.300
Acting as vehicle transporter without certificate 822.305
Exemptions from vehicle transporter certification requirement 822.310
Privileges granted by certificate 822.315
Improper use of vehicle transporter plate 822.325
Failure to return revoked or suspended certificate 822.500
Operating commercial driver training school without certificate 822.505
Commercial driver training school bond 822.510
Proof of insurance 822.515
Certificates 822.520
Failure to return revoked, suspended or canceled commercial driver training school certificate 822.525
Acting as driver training instructor without certificate 822.530
Certificate 822.535
Failure to return revoked or suspended certificate 822.600
Failure of garage to report accident or bullet contact 822.605
False swearing relating to regulation of vehicle related businesses 822.700
Certification fees 822.705
Fee for issuance or renewal of vehicle dealer certificate 822.990
Civil penalties for violations of ORS 822.500 and 822.525 822.992
Civil penalties for violations related to dismantlers 822.995
Civil penalties for violations related to towing
Green check means up to date. Up to date

Current through early 2024

§ 822.030’s source at oregon​.gov