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Wisconsin Administrative Code (Last Updated: January 10, 2017) |
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Agency Trans. Department of Transportation |
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Chapter 140. Motor Vehicle Dealer Financial Eligibility And Bond Claim Requirements |
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SubChapter II. Claims Against Bonds of Department Licensees |
Section 140.25. Payment by surety or financial institution.
Latest version.
- (1) The surety or financial institution may, at any time, pay the amount of the bond or letter of credit to the department.(2) The department shall hold all payments on a particular bond or letter of credit in a separate account. This separate account may be interest bearing. The department may retain interest earned, if any, but shall not otherwise make any charges against the bond or letter of credit for administering the bond or letter of credit and determining claims against it.(3) If payment from the surety or financial institution is not received prior to, or during, the determination of claims by the department as provided in s. Trans 140.26 , the department shall, after the final determination of timely claims, demand payment on the bond or letter of credit from the surety in an amount equal to the lesser of the face value of the bond or the aggregate total of the claims determined to be allowed. The surety or financial institution shall pay the amount demanded to the department within 30 days. The department may execute an appropriate written release for the surety or financial institution, if the surety or financial institution so requests, after payment is received.(4) If a surety or financial institution fails to tender the amount of the bond or letter of credit to the state, or to make timely payment of the amount demanded as provided in sub. (3) , or otherwise fails to observe the provisions of this chapter, then the department may, in addition to any other available remedy, revoke its acceptance of the surety or financial institution as adequate to provide any bond or letter of credit of any persons secured under any statute or rule administered by the department. The department shall notify the surety company or financial institution of its intent to revoke its acceptance of the surety or financial institution. The surety company or financial institution may, within 30 days of such notice, request a hearing before the secretary or the secretary's designee, prior to revocation of the department's acceptance of the surety or financial institution.
History:
Emerg. cr. eff. 10-16-85; cr.
Register, July, 1986, No. 367
, eff. 8-1-86; am.
Register, February, 1996, No. 482
, eff. 3-1-96.