Tennessee § 55-17-405 - Applications for licenses and renewals.

§ 55-17-405. Applications for licenses and renewals.

The commission shall prescribe and provide forms to be used for applications for licenses and for the renewals thereof to be issued under the terms of this part, and require all applicants and their enfranchised manufacturers, as a condition precedent to the issuance of a license, to provide information touching on and concerning the applicant's character, honesty, integrity, reputation, business relationships, and ability as the commission may deem necessary; provided, that every application for a new recreational vehicle dealer's license shall contain, in addition to any information the commission may require, a statement as to the following facts: The applicant's name and residential address and the trade name, if any, under which the applicant intends to conduct business; If the applicant is a partnership, each partner's name and residential address, whether a limited or general partner, and the name under which the partnership business is to be conducted; If the applicant is a corporation, the name of the corporation and the name and address of each of its principal officers, directors, and all persons owning more than five percent (5%) of outstanding shares of stock issued by the corporation; The names of any inventory financers, including floor planners used by the dealership. Applicants shall provide this information to the commission and keep it current; A complete description, including the city, town, or village with the street and number, if any, of the permanent, established place of business and any other additional place or places of business as shall be operated and maintained by the applicant in conjunction with the permanent, established place of business; A financial statement prepared in accordance with generally accepted accounting principles by a certified public accountant or public accountant dated not earlier than twelve (12) months prior to the date of the application and copies of the most current financial information furnished to the manufacturer, distributor, or their representatives under the terms of any franchise agreements; and A duly executed service agreement on forms provided by the commission with a factory authorized service or repair garage within a reasonable distance from the applicant's established place of business if the recreational vehicle dealer applicant does not have facilities at the dealer's established place of business to service or repair recreational vehicles. All applications for licenses required to be obtained under this part shall be verified by oath or affirmation of the applicant or the applicants. All applications shall be accompanied by the payment of the fee prescribed by § 55-17-406. In the event that any application is denied or the license applied for is not issued, seventy-five percent (75%) of the license fee shall be refunded to the applicant or applicants. All licenses shall expire two (2) years from the date of issuance. Any change of address of a recreational vehicle dealer must be reported to the commission. When a vehicle salesperson desires to change employment from one dealer to another, that salesperson must submit such person's license to the commission for endorsement of change of employer and may become a salesperson at that person's new place of employment upon submission of the license for endorsement of change of location and payment of any fees due. Each application for a license or renewal of a license of a recreational vehicle dealer shall be accompanied by evidence satisfactory to the commission that the dealer has a surety bond in the amount of at least fifty thousand dollars ($50,000) in force. A letter of credit shall not be satisfactory evidence of a surety bond in the required amount. The bond is for the benefit of any person who suffers loss because of either: Nonpayment by the dealer of a retail customer's prepaid title, registration, or other related fees or taxes; or The recreational vehicle dealer's failure to deliver in conjunction with the sale of a recreational vehicle a valid recreational vehicle title certificate free and clear of any prior owner's interests and all liens except a lien created by or expressly assumed in writing by the buyer of the recreational vehicle. The aggregate liability of the surety to all persons shall in no event exceed the amount of this bond. In lieu of a corporate surety on the bond required by subdivision (g)(1), the commission may allow the recreational vehicle dealer to secure the bond by depositing collateral in the form of a certificate of deposit, as accepted and authorized by the banking laws of this state, that has a face value equal to the amount of the bond. The collateral may be deposited with or executed through any authorized state depository designated by the commission. Interest on any deposited certificate of deposit shall be payable to the dealer who has deposited it as collateral, or to a person as the recreational vehicle dealer or the certificate may direct. The surety bond must remain and continue in force for as long as the licensee remains licensed and must name the Tennessee motor vehicle commission as beneficiary. Upon notice of cancellation, the licensee shall either cease business operations until proof of minimum coverage is provided, or provide evidence of minimum coverage from another provider. Any surety is required to provide sixty (60) days' notice of cancellation of the bond or certificate of deposit or letter of credit to the commission. No license so issued shall be transferable, and a separate license shall be required for each separate place of business and shall be prominently displayed in the place of business operated by the person to whom the license is issued. All applications for issuance or renewal of a recreational vehicle dealer license shall contain an attestation that the applicant will comply with each of the following requirements: The applicant shall maintain the surety bond required by subsection (g) in full force and effect during all times that the license is active; and The applicant shall notify the commission upon a change in ownership or location of the dealership as required by § 55-17-407. Additionally, all applications for issuance or renewal of a recreational vehicle dealer license shall contain the following statement, immediately following the attestation required by subdivision (h)(1): FAILURE TO MAINTAIN A SURETY BOND AS REQUIRED BY T.C.A. § 55-17-405 , OR NOTIFY THE TENNESSEE MOTOR VEHICLE COMMISSION OF A CHANGE IN THE OWNERSHIP OR LOCATION OF THE DEALERSHIP AS REQUIRED BY T.C.A. § 55-17-407 , MAY RESULT IN THE ASSESSMENT OF A CIVIL PENALTY AND/OR SUSPENSION OR REVOCATION OF THE RECREATIONAL VEHICLE DEALER LICENSE. Acts 2016, ch. 781, § 10. Compiler's Notes. Acts 2016, ch. 781, § 14, provided that the act, which enacted this part, shall apply to any licenses issued or renewed on or after January 1, 2017.