Ensuring the integrity and responsibility of motor vehicle dealers and wholesalers in South Carolina, the DLA-1B form stands as a crucial requirement by the South Carolina Department of Motor Vehicles. This Motor Vehicle Dealer and Wholesaler Surety Bond, meticulously designed to protect consumers from fraud, fraudulent representations, or any violations related to motor vehicle sales and transfers, encapsulates a guarantee of $15,000 by the bonded entities. It serves not just as a prerequisite for obtaining and renewing a dealer's license but also as an ongoing commitment to lawful and ethical business practices. Compliance with the stipulations of Title 56 of the South Carolina Code of Laws concerning the sale and transfer of motor vehicles is underscored through this bond. Furthermore, it outlines conditions ensuring that any aggrieved party may seek recourse without the necessity of a prior judgment against the dealer or wholesaler. This form, subject to continuous obligation and requiring specific conditions for cancellation, solidifies the framework within which motor vehicle dealers and wholesalers operate, ensuring their accountability and the protection of consumer rights.
| Question | Answer |
|---|---|
| Form Name | Form Dla 1B |
| Form Length | 2 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 30 sec |
| Other names | DLA 1B Revised 2 6 04 form dla 1b |
South Carolina Department of Motor Vehicles
MOTOR VEHICLE DEALER AND WHOLESALER SURETY BOND
DEALER NUMBER
____________________________
Please read instructions on reverse side before executing bond.
A.M. BOND NUMBER ________________________ EFFECTIVE DATE _______________________ TIME ________________P.M.
KNOW ALL MEN BY THESE PRESENTS: that we _____________________________________________________________
(Firm Name as Licensed)
Doing business at
___________________________________________________________________________________________
as Principal and _____________________________________________________________________________________ as Surety
are duly authorized to do business within the State of South Carolina, as Surety, are held and firmly bound unto the people of the State of South Carolina to indemnify any owner of a motor vehicle, or his legal representative, who may be aggrieved by any fraud, fraudulent representation or violation by said Principal, salesmen, or representatives acting for such Principal within the scope of employment of such salesmen or representatives, of any of the provisions of Title 56 of the South Carolina Code of Laws relating to Motor Vehicle Dealers and the sale and transfer of motor vehicles, in the amount of Fifteen Thousand Dollars ($15,000), lawful money of the United States of America, for which payment, well and truly to be made, we bind ourselves, jointly and severally, our joint and several heirs, executors, administrators, successors, and assigns, firmly by these presents; provided that the aggregate liability of the surety under this bond for any and all claims is limited to Fifteen Thousand Dollars ($15,000) or to the amount of the actual loss incurred, whichever is less.
WHEREAS, the above bounden Principal desires that a motor vehicle dealer's or wholesaler's license be issued and thereafter reissued from time to time by South Carolina Department of Motor Vehicles;
WHEREAS, this bond executed by the said Principal and Surety is filed with the South Carolina Department of Motor Vehicles in compliance with S.C. Code Ann.,
NOW THEREFORE, the conditions of this obligation are such that if the Principal shall well and truly observe and strictly and faithfully comply with the aforesaid requirements of law and shall save and keep harmless any owner of a motor vehicle or his legal representation made to him by such Principal, such Principal's salesmen or representatives acting for the Principal or within the scope of the employment of such salesmen or representatives, or from any loss or damage suffered by reason of the violation such Principal or any such salesmen or representatives of any of the provisions of Title 56 of the South Carolina Code of Laws relating to Motor Vehicle Dealers and the sale and transfer of motor vehicles, then this obligation shall be null and void; otherwise it shall remain in full force and effect. It is understood that the injured party need not obtain a judgment against the Principal before making claim against the Surety on this bond.
This bond shall not automatically expire with the license for which it is initially issued, but shall continue indefinitely, from license year to license year, upon timely payment of the premium thereon. Before this bond may be cancelled, a thirty (30) day written notice must be given to the Department of Motor Vehicles. Such cancellation does not affect any liability incurred or accrued prior to cancellation.
__________________________________________________ |
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__________________________________________________ |
|
(Principal) |
(Surety) |
By: _______________________________________________ |
By: ______________________________________________ |
(Title) |
(Title) |
MOTOR VEHICLE DEALER'S AND WHOLESALER'S SURETY BOND INSTRUCTIONS
1.Every applicant for a motor vehicle dealer's and wholesaler's license must furnish a surety bond and Power of Attorney in the penal amount of Fifteen Thousand Dollars ($15,000.00) on a form to be prescribed by the Executive Director of the Department of Motor Vehicles .
2.The Executive Director of the Department of Motor Vehicles has prescribed a standard form of bond for motor vehicle dealers - Motor Vehicle Dealer's and Wholesaler's Surety Bond (Form
3.This bond must be executed by the applicant, as principal, and by a corporate surety company authorized to do business in this State, as surety, and given to the Department before the application can be acted upon.
4.This bond must be signed by either the owner, partner or corporate officer of the dealership (Principal) and an agent from your surety company.
5.The bond must be effective prior to or at the time of the granting of a license.
6.If the bonding company has changed, please submit a new original bond and Power of Attorney at the time of renewal.
7.If, during the license year, there is any change in a principal's name, address or ownership then an endorsement from the surety agent or a new bond will be required along with a new application for Dealer/Wholesaler License.