Pennsylvania Code › Title 67 - TRANSPORTATION › Part I - Department of Transportation › Subpart A - Vehicle Code Provisions › Article III - Registration › Chapter 43 - TEMPORARY REGISTRATION CARDS AND PLATES › Section 43.9 - Bond

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Authorized dealers, manufacturers and full agents to be
					 bonded.
Every authorized dealer, manufacturer and full agent shall
					 file and maintain with the Bureau a bond executed by a surety company
					 authorized to transact business in this Commonwealth. The bond shall be for the
					 use and benefit of the Commonwealth and a person who has sustained a monetary
					 loss within the limitations of the bond as specified in subsection
					 (d).
(b)
Amount of
					 bond.
Issuing agents, other than card agents, shall be bonded in the
					 amount as set forth in the Agent Services Agreement.
(c)
Decrease in amount of
					 bond.
If the amount of the bond is decreased, or if there is a final
					 judgment outstanding against the bond, the right of the authorized dealer,
					 manufacturer or full agent to issue temporary registration cards and plates
					 will be suspended until steps are taken, satisfactory to the Bureau, to restore
					 the original amount of the bond, provide additional bond or satisfy the
					 judgment.
(d)
Limitations
					 of bond.
The bond required under this section shall cover transactions
					 in which the Commonwealth or a person specified in subsection (a) has sustained
					 a monetary loss due to the agent, dealer or manufacturer submitting a
					 dishonored or uncollectible check to the Commonwealth (including protest and
					 uncollectible check fees), or failing to remit to the Commonwealth a fee or tax
					 when the monetary loss is incurred in connection with the business of the
					 dealer or manufacturer. A check which is dishonored upon presentment, or an
					 application for title or registration which is received without a required fee
					 or tax, shall constitute a monetary loss. Failure to pay a monetary penalty
					 within 45 days of assessment shall also constitute a monetary loss. The bond
					 required under this section may not cover a loss for a transaction which is not
					 mentioned in this subsection relating to the issuance of temporary registration
					 cards or plates in connection with the business of the dealer, manufacturer or
					 full agent. If the dealer, manufacturer or full agent has one or more branch
					 offices, the amount of the bond shall be as specified in the Agent Services
					 Agreement.
(e)
Bond already
					 on file.
An authorized dealer, manufacturer or full agent who has
					 filed a bond with the Commonwealth will not be required to file a separate bond
					 under this section, if the bond already on file with the Commonwealth is in the
					 name of the Commonwealth and at least equal to the amount and coverage of the
					 bond required under this section.
(f)
Acceptance.
The surety
					 and terms of bonds or riders shall be subject to review and acceptance by the
					 Bureau.
(g)
Change of
					 address.
When a change of address occurs, a stipulation or rider to
					 the original bond shall be submitted for the new address.
(h)
Authorized claims.
The
					 Bureau has the right to make and settle claims upon the bond with the surety
					 company on behalf of the Commonwealth and a person who has incurred a monetary
					 loss as specified in subsection (a). The Bureau will, upon written request,
					 assign this right to a person for that person's claim; however, in this event,
					 the Commonwealth is released from any duty to the person towards obtaining
					 satisfaction of that person's claim. The Commonwealth will have priority, to
					 the exclusion of all others, in receiving payment from the surety. If the
					 aggregate amount of valid claims exceeds the amount of the bond, priority for
					 the payment of claims shall be as follows:
(1)
					 Claims made by the Commonwealth.
(2) Claims made by the Commonwealth for
					 persons.
(3) Claims made by persons
					 who obtained assignment from the Bureau.