§ 740-a. Automobile broker business surety bond. 1. Automobile broker
businesses shall obtain and continue in effect a surety bond in an
amount of one hundred thousand dollars executed by a surety company
authorized to transact business in the state by the department of
financial services of the state or its successor. The bonds shall be
approved as to form by the secretary of state and shall be conditioned
on the automobile broker business' payment of all valid bank drafts,
including checks, drawn for the purchase of motor vehicles and
safekeeping of all customer deposits related to the sale of a motor
vehicle between the time of receipt of such customer deposit and the
transfer of good title to the vehicle to the customer.

2. Recovery against a bond may be made by a person, including the
state, who obtains a judgment against the automobile broker business for
an act or omission on which the bond is conditioned if the act or
omission occurred during the term of the bond. The total liability
imposed on the surety under this section for all breaches of the bond
condition is limited to the face amount of the bond. Such liability may
include, but is not limited to, the amount of the valid bank drafts,
including checks, drawn by the automobile broker business for the
purchase of motor vehicles. In no event shall the surety on a bond be
liable for total claims in excess of the bond amount, regardless of the
number or nature of claims made against the bond or the number of years
the bond remained in force.

3. Any surety issuing a bond pursuant to this subdivision shall be
required to provide sixty days' notice to the secretary of state prior
to the effective date of cancellation of the bond.