Section 140.022. Security; forms and types.

 

(1)   Forms of security. The only acceptable forms of security to fulfill the security requirements of ss. 218.0101 to 218.0163 , Stats., are as follows:

(a) Surety bonds. The bond shall be filed on a form prescribed by the department and issued by a bonding company licensed by this state and acceptable to the department. The bond shall be payable in the name of the department for the benefit of any person who sustains a loss because of an act of the licensee constituting grounds for the suspension or revocation of a license under ss. 218.0101 to 218.0163 , Stats.

(b) Letters of credit. The letter of credit shall be filed on a form prescribed by the department and issued by a financial institution acceptable to the department. The issuer shall waive the right to revoke the credit before its expiration date, which shall be no earlier than 3 years after the last day of the period covered by the letter. The letter of credit shall be payable in the name of the department and upon a written statement by the department that one or more persons have sustained a loss because of acts by the licensee constituting grounds for the suspension or revocation of a license under s. 218.0116 , Stats.

(2)   Minimum security. A motor vehicle dealer or applicant for a motor vehicle dealer license shall provide and maintain in force a bond or letter of credit of not less than $50,000, or if the dealer or applicant sells or proposes to sell motorcycles and not other types of motor vehicles, a bond or irrevocable letter of credit of not less than $5,000.

(3)   Supplemental security. In addition to the security required under sub. (2) , the department may require a motor vehicle dealer, or applicant for a motor vehicle dealer license, to provide and maintain in force a supplemental bond in an amount not less than $5,000 nor more than $100,000. The department may also require such securities of wholesalers and motor vehicle salespersons and applicants for such licenses. The department shall require such bonds according to the criteria described in s. Trans 140.027 .

History: Cr. Register, February, 1996, No. 482 , eff. 3-1-96; corrections in (1) (intro.) made under s. 13.92 (4) (b) 7. , Stats., Register March 2012 No. 675 ; 2013 Wis. Act 363 : am. (2) Register May 2014 No. 701 , eff. 6-1-14.

Note

Under ss. 632.14 to 632.18 , Stats., surety insurance is regulated by the Commissioner of Insurance. Microsoft Windows NT 6.1.7601 Service Pack 1 These forms may be obtained by contacting the Dealer Section's Business Licensing Unit at [phone]. Microsoft Windows NT 6.1.7601 Service Pack 1