A. The aircraft dealer shall file with the department a continuous corporate surety bond for the benefit of this state or a cash deposit as prescribed in section 35-155 in the sum of ten thousand dollars that is conditioned on the faithful performance of all sales contracts or agreements and that guarantees payment of all outstanding taxes and fees.

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Terms Used In Arizona Laws 28-8384

  • Aircraft: includes a balloon, airplane, amphibian and craft used for navigation through the air. See Arizona Laws 28-8201
  • aircraft dealer: means a person who is either:

    1. See

  • Dealer: means a person who is engaged in the business of buying, selling or exchanging motor vehicles, trailers or semitrailers and who has an established place of business and has paid fees pursuant to section 28-4302. See Arizona Laws 28-101
  • Department: means the department of transportation acting directly or through its duly authorized officers and agents. See Arizona Laws 28-101
  • State: means a state of the United States and the District of Columbia. See Arizona Laws 28-101
  • Writing: includes printing. See Arizona Laws 1-215

B. The surety of this bond may cancel the bond on giving notice in writing to the department and the aircraft dealer sixty days before the cancellation date. After cancellation the surety is relieved of liability for any breach of conditions occurring after the cancellation date.

C. If a surety has any cause to cancel the bond of an aircraft dealer and gives notice of the cancellation, the department shall immediately notify the aircraft dealer by certified mail addressed to the last known address of the aircraft dealer that the aircraft dealer shall discontinue sales until such time as a new bond or cash deposit meeting the qualifications of this section is filed with the department.

D. This section does not apply to aircraft dealers engaged primarily in the sale of new or used lighter-than-air aircraft. For the purposes of this subsection, "lighter-than-air aircraft" means an aircraft that can rise and remain suspended by using contained gas whose molecular weight is less than the molecular weight of the air displaced by the gas.