North Carolina § 66-409 - Bond or trust account required.

§ 66-409. Bond or trust account required.

Before any permit shall be issued to a dealer pursuant to G.S. 66-407, the dealer shall execute a satisfactory cash or surety bond or establish a trust account with a licensed and insured bank or savings institution located in the State of North Carolina in the sum of ten thousand dollars ($10,000). The bond or trust account shall be in favor of the State of North Carolina. A surety bond is to be executed by the dealer and by two responsible sureties or a surety company licensed to do business in the State of North Carolina and shall be on a form approved by the Department of Public Safety. Any bond shall be kept in full force and effect and shall be delivered to the law-enforcement agency which first issued a current permit to the dealer. A bond or trust account shall be for the faithful performance of the requirements and obligations of the dealer's business in conformity with this Part. Any law-enforcement agency shall have full power and authority to revoke the permit and sue for forfeiture of the bond or trust account upon a breach thereof. Any person who shall have suffered any loss or damage by any act of the permittee that constitutes a violation of this Part shall have the right to institute an action to recover against such permittee and the surety or trust account. Upon termination of the bond or trust account the permit shall become void. History (1981, c. 956, s. 1; c. 1001, s. 4; 2011-145, s. 19.1(g); 2012-46, ss. 15, 20.) Editor's Note. - Former G.S. 66-168 was recodified as this section by Session Laws 2012-46, s. 15, effective October 1, 2012, and applicable to offenses committed on or after that date. Session Laws 2012-46, s. 33, provides: "This act becomes effective October 1, 2012, and applies to offenses committed on or after that date. Prosecutions for offenses committed before the effective date of this act are not abated or affected by this act, and the statutes that would be applicable but for this act remain applicable to those prosecutions." Effect of Amendments. - Session Laws 2011-145, s. 19.1(g), effective January 1, 2012, substituted "Public Safety" for "Crime Control and Public Safety" at the end of the third sentence. Session Laws 2012-46, s. 20, substituted "G.S. 66-407" for "G.S. 66-165" in the first sentence; and substituted "Part" for "Article" in the fifth and seventh sentences. For effective date and applicability provision, see Editor's note.