North Carolina Administrative Code › Title 19A - TRANSPORTATION › Chapter 03 - DIVISION OF MOTOR VEHICLES › Subchapter D - ENFORCEMENT SECTION › Section .0200 - MOTOR VEHICLE DEALER, SALES, DISTRIBUTOR AND FACTORY REPRESENTATIVE LICENSE › Section 03D .0217 - APPLICATION FOR LICENSE

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Applications
				  for all licenses required by the Motor Vehicle Dealers and Manufacturers
				  Licensing Law shall be made on forms furnished by the Division and signed by
				  the Owner, partner or proper officer of a corporation and filed with the
				  Enforcement Section, N. C. Division of Motor Vehicles; Raleigh, North Carolina
				  27697, accompanied by the necessary fees; provided, the Division shall not
				  issue a motor vehicle dealer license to a new motor vehicle dealer unless or
				  until the applicant has satisfied the Division that a distributor or
				  manufacturer has awarded the applicant a franchise to sell new motor vehicles
				  in the relevant market area for which a license is sought.
(b) The application and annual renewal of
				  license to do business as a manufacturer, factory branch, distributor,
				  distributor branch, wholesaler or dealer, must be signed by the owner, partner
				  or an officer of the corporation. The application for license as a motor
				  vehicle sales representative, distributor or factory representative must be
				  certified by the owner, partner, or an officer of the corporation.
(c) Application for all licenses required by
				  the Motor Vehicle Dealers and Manufacturers Licensing Law must accurately
				  describe the physical location of the business such as: street number, street
				  name, city, state and zip code. If a post office box or rural route is used,
				  the above information must also be included. It is not permissible to have a
				  mailing address different from the actual location of the business. Wholesale
				  applicants must supply the Division with a telephone number at which such
				  business may be contacted by a representative of the Division concerning
				  records and sales transactions.
(d)
				  Each applicant prior to being approved for license as a motor vehicle dealer,
				  manufacturer, distributor, distributor branch, wholesaler or factory branch
				  shall furnish a corporate surety bond, cash bond or fixed value equivalent
				  thereof as required by
				  G.S.
				  20-288(e). This bond shall
				  remain in force and effect so long as the licensee remains in business. When a
				  cash bond or equivalent thereof is filed with the Division, same shall remain
				  in effect for a period of four years after termination of business. The name
				  and address appearing on the bond must be exactly as shown on the
				  application.
(e) The Division must
				  have evidence of an assumed name being filed with the Register of Deeds in the
				  county in North Carolina where the business is maintained when such business is
				  operated under any designation, name or style other than the real name of the
				  owner or owners thereof or under its corporate name. After this filing when
				  there is a change of name or ownership, evidence of this change being filed
				  with the Register of Deeds shall be furnished to the Division of Motor
				  Vehicles.
(f) A foreign corporation
				  must procure a certificate of authority from the North Carolina Secretary of
				  State before being licensed to operate in this State under the Motor Vehicle
				  Dealers and Manufacturers Licensing Law and provide written proof of same to
				  the Division.
(g) Before a North
				  Carolina corporation can be licensed under the Motor Vehicle Dealer and
				  Manufacturers Licensing Law, articles of incorporation must have been filed
				  with the North Carolina Secretary of State, and written proof of same provided
				  to the Division.
(h) Before the
				  Division shall issue licenses required by the Motor Vehicle Dealers and
				  Manufacturers Licensing Law, the established salesroom or established office
				  shall be in compliance with all state, county and municipal zoning ordinances
				  or regulations, and written proof of same provided to the Division.
(i) Prior to issuance of licenses required by
				  the Motor Vehicle Dealers and Manufacturers Licensing Law, the applicant must
				  purchase all required state and local "Traders" licenses and provide written
				  proof of same to the Division.
(j)
				  License fees for each fiscal year, or part thereof, shall be as provided under
				  G.S.
				  20-289; provided no license shall be issued
				  until the fees for license required by
				  G.S.
				  20-87(7) have been paid to
				  the Division.
(k) Upon receipt of
				  application for any license required by the Motor Vehicle Dealers and
				  Manufacturers Licensing Law, the Commissioner shall cause an investigation to
				  be made to determine whether the applicant meets the requirements of law for
				  licensing as a motor vehicle dealer, manufacturer, factory branch, distributor,
				  distributor branch, wholesaler, motor vehicle sales representative, factory
				  representative or distributor branch representative, and this shall include the
				  inspection of the proposed location, applications and other required documents
				  by an agent of the Enforcement Section.
(l) When an applicant for a license under
				  this Section is approved, based upon the application and the results of
				  investigation made, the applicant will be issued license subject to the
				  following limitations:
(1) A license issued
				  under the Motor Vehicle Dealers and Manufacturers Licensing Law shall be valid
				  until suspended, revoked or expired. The license must be at all times
				  conspicuously displayed at the place designated by the Division.
(2) Any motor vehicle dealer, manufacturer,
				  factory branch, distributor, distributor branch, or wholesaler who moves his
				  place of business from the location for which license was issued shall
				  immediately notify the Enforcement Section, North Carolina Division of Motor
				  Vehicles, of such change of location and shall not engage in the business of
				  buying, selling, trading or manufacturing motor vehicles until the new location
				  has been inspected and approved by an agent of the Division and the necessary
				  form and additional fees, if any, have been submitted to the
				  Division.
(3) A license issued
				  pursuant to Article 12 of Chapter 20 of the General Statutes shall not be
				  assignable and shall be valid only for the owner, or owners in whose name or
				  names it is issued and for transaction of business only at place designated
				  therein. If an individual, partnership or proprietor­ship should
				  incorporate, new fees are due.
(4)
				  The Division shall be notified when there is a change of name and the licensee
				  shall produce evidence that a bond as required by
				  G.S.
				  20-288(e) is in
				  effect.