S-4457               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 4608

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senate Committee on Transportation (originally sponsored by Senator Owen)

Read first time 2/5/86.

AN ACT Relating to motor vehicle dealers, salesmen, and manufacturers licenses; amending RCW 46.70.070; and adding a new section to chapter 46.70. RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 46.70.070, chapter 12, Laws of 1961 as last amended by section 1, chapter 152, Laws of 1981 and RCW 46.70.070 are each amended to read as follows:

          (1) Before issuing a vehicle dealer's license, the  department shall require the applicant to file with the department a surety bond in the amount of:

          (a) Fifteen thousand dollars for motor vehicle dealers;

          (b) Thirty thousand dollars for mobile home and travel trailer dealers:  PROVIDED, That if such dealer does not deal in mobile homes such bond shall be fifteen thousand dollars;

          (c) Five thousand dollars for miscellaneous dealers,

running to the state, and executed by a surety company authorized to do business in the state.  Such bond shall be approved by the attorney general as to form and conditioned that the dealer shall conduct his business in conformity with the provisions of this chapter.  Any retail purchaser who shall have suffered any loss or damage by reason of breach of warranty or by any act by a dealer which constitutes a violation of this chapter shall have the right to institute an action for recovery against such dealer and the surety upon such bond.  Successive recoveries against said bond shall be permitted, but the aggregate liability of the surety to all persons shall in no event exceed the amount of the bond.  Upon exhaustion of the penalty of said bond or cancellation of the bond by the surety the vehicle dealer license shall  automatically be deemed canceled.

          (2) The bonding requirements of this section and RCW 46.70.075 may be evidenced by the certificate of the state treasurer that the person named therein has deposited cash or securities such as may be legally purchased by savings banks or for trust funds of a market value equal to one and one-half times the market value of the required licensing surety bond.  The state treasurer shall not accept any such deposit and issue a certificate therefor and the department shall not accept such certificate unless accompanied by evidence that there are no unsatisfied judgments of any character against the deposit in the county where the depositor resides.

(3) The bond, cash or securities deposits for any vehicle dealer licensed or to be licensed under more than one classification shall be the highest bond, cash or securities required for  any such classification.

NEW SECTION. Sec. 2.  A new section is added to chapter 46.70 RCW to read as follows:

          Such deposit in lieu of surety bonds as required in RCW 46.70.070 and 46.70.075, shall be held by the state treasurer to satisfy, in accordance with the provisions of this chapter, any execution on a judgment issued against such person making the deposit, for damages, subject to registration under the laws of this state after such deposit was made.  Money or securities so deposited shall not be subject to attachment or execution unless such attachment or execution shall arise out of a suit for damages as aforesaid.  Any interest or other income accruing to such money or securities, so deposited, shall be paid by the state treasurer to the depositor, or his order, as received.