Section 140.22. Priority of claims.

  Allowable claims against the security shall be assigned to one of the following priority classes:

(1)   Salesperson, motor vehicle and recreational vehicle dealer securities. The priority classes of allowable claims against the security of any licensee except a wholesaler, salvage or auction dealer, in order of their priority, are as follows:

(a) Claims of retail customers including, without limitation, claims arising from a particular motor vehicle purchase from the licensee or from a particular motor vehicle sale by the licensee, claims for repairs warranted by the licensee, claims for failure to furnish title to a motor vehicle, claims for deposits against an uncompleted motor vehicle purchase transaction, and claims for the failure of the licensee to pay the claimant for a trade-in, a motor vehicle purchased by the licensee, or a consigned vehicle not returned to the consignor upon request.

(b) Claims of commercial customers including, without limitation, claims arising from a particular motor vehicle purchase from the licensee or from a particular motor vehicle sale by the licensee, claims for repairs warranted by the licensee, claims for failure to furnish title to a motor vehicle, claims for deposits against an uncompleted motor vehicle purchase transaction, and claims for the failure of the licensee to pay the claimant for a trade-in, a motor vehicle purchased by the licensee, or a consigned vehicle not returned to the consignor upon request.

(c) Claims of the department for title and registration fees.

(2)   Wholesaler, salvage and auction dealer bonds. The priority classes of allowable claims against a wholesaler bond, a salvage dealer bond or an auction dealer bond, in order of their priority, are as follows:

(a) Claims arising from transactions involving the sale or purchase of a particular motor vehicle, excluding the claims of a secured party, a financial institution, the department of revenue or the department of transportation.

(b) All other allowable claims, including claims of the department for title and registration fees.

History: Emerg. cr. eff. 10-16-85; cr. Register, July, 1986, No. 367 , eff. 8-1-86; am. (intro.), (1) (intro.) to (b), (2) (intro.) and (b), r. (1) (d) to (f), Register, February, 1996, No. 482 , eff. 3-1-96.