1. Application. A dealer shall apply for a license by filing with the Secretary of State an application in the form prescribed by the Secretary of State and by paying the necessary fee.

[PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]

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Terms Used In Maine Revised Statutes Title 29-A Sec. 901

  • Business location: means a permanent enclosed building in which the business involving transporter or loaner licenses may be lawfully carried on in accordance with the terms of all applicable building codes and zoning and other land use regulatory ordinances. See Maine Revised Statutes Title 29-A Sec. 851
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Dealer: means a person engaged in the business of buying, selling, exchanging or offering to negotiate, negotiating or advertising the sale of a vehicle or industrial equipment and who has:
A. See Maine Revised Statutes Title 29-A Sec. 851
  • Established place of business: means a permanent, enclosed building:
  • A. See Maine Revised Statutes Title 29-A Sec. 851
  • Fraud: Intentional deception resulting in injury to another.
  • License: includes , but is not limited to, a nonresident operating privilege and the privilege of a person to apply for or obtain a license or permit to operate a motor vehicle. See Maine Revised Statutes Title 29-A Sec. 101
  • New vehicle dealer: means a dealer whose primary business is the buying and selling of new motor vehicles and who has a franchise from a distributor or manufacturer. See Maine Revised Statutes Title 29-A Sec. 851
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Sell: means to sell, offer, negotiate or advertise to sell, display for sale, exchange or otherwise transfer for value. See Maine Revised Statutes Title 29-A Sec. 101
  • Trailer: means a vehicle without motive power, designed to carry persons or property and to be drawn by a motor vehicle, not operated on railroad tracks, and so constructed that no part of its weight rests upon the towing vehicle. See Maine Revised Statutes Title 29-A Sec. 101
  • Vehicle: means a device for conveyance of persons or property on a way. See Maine Revised Statutes Title 29-A Sec. 101
  • Year: means a calendar year, unless otherwise expressed. See Maine Revised Statutes Title 1 Sec. 72
  • 2. Contents. An application must contain the following:
    A. The applicant’s name, type of business organization and place of business; [PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]
    B. The qualifications and business history of the applicant and the same information for each partner, officer or director; [PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]
    C. Whether the applicant has been found guilty of a criminal offense within the past 5 years or has been held liable for a judgment involving fraud, misrepresentation or conversion. For a corporation or partnership, the same information must be provided for each director, officer or partner; and [PL 1997, c. 776, §28 (AMD).]
    D. Any other information required by the Secretary of State. [PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]

    [PL 1997, c. 776, §28 (AMD).]

    3. New or used vehicle dealer. If the applicant is a new or used vehicle dealer, information on the type of business also must be provided, including:
    A. Whether the applicant intends to sell used motor vehicles and, if so, whether there is space for servicing and repairs; [PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]
    B. A certificate by a state police officer or a representative of the Secretary of State that the applicant has an established place of business at each business location in the State; [PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]
    C. For a new vehicle dealer, a copy of a current service agreement with a manufacturer or distributor requiring the applicant, on demand of a customer receiving a new vehicle warranty, to perform or arrange for, within a reasonable distance of the established place of business, the service, repair and replacement work required by warranty; and [PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]
    D. Any other information the Secretary of State requires. [PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]

    [PL 1993, c. 683, Pt. A, §2 (NEW); PL 1993, c. 683, Pt. B, §5 (AFF).]

    4. Surety bonds. A dealer other than an equipment and light trailer dealer shall file with the Secretary of State and maintain a surety bond in the following amount, based on the prior year‘s sales:
    A. For 0 to 50 sales, $25,000; [PL 2017, c. 229, §17 (AMD).]
    B. For 51 to 100 sales, $50,000; [PL 2017, c. 229, §17 (AMD).]
    C. For 101 to 150 sales, $75,000; or [PL 2017, c. 229, §17 (AMD).]
    D. For 151 sales and over, $100,000. [PL 2017, c. 229, §17 (AMD).]
    E. [PL 2017, c. 229, §17 (RP).]
    Initial licensees shall file a bond based on projected sales.
    Persons beginning in the business as licensed vehicle dealers are subject to review after initial bonding depending on volume.
    All licensees must be reviewed annually by the Secretary of State to determine compliance with the correct amount of the bonds.
    Failure to maintain such a bond is grounds for immediate suspension of the dealer license.
    Any persons with a claim against the bond required by this subsection must file the claim within 3 years from the date of sale.

    [PL 2017, c. 229, §17 (AMD).]

    SECTION HISTORY

    PL 1993, c. 683, §A2 (NEW). PL 1993, c. 683, §B5 (AFF). PL 1997, c. 776, §28 (AMD). PL 2017, c. 229, §17 (AMD).