Iowa Admin. Code r. 761-425.10 - Application for dealer's license
(1)
Application form. To
apply for a license as a motor vehicle or towable recreational vehicle dealer,
the applicant shall complete an application on a form prescribed by the
department.
(2)
Surety
bond.
a. The applicant shall obtain
a surety bond in the following amounts and file the original with the vehicle
and motor carrier services bureau:
(1) For a
motor vehicle dealer's license, $75,000. However, an applicant for a motor
vehicle dealer's license is not required to file a bond if the person is
licensed as a towable recreational vehicle dealer under the same name and at
the same principal place of business.
(2) For a towable recreational vehicle
dealer's license, $75,000. However, an applicant for a towable recreational
vehicle dealer's license is not required to file a bond if the person is
licensed as a motor vehicle dealer under the same name and at the same
principal place of business.
b. The surety bond shall provide for notice
to the vehicle and motor carrier services bureau at least 30 days before
cancellation.
c. The vehicle and
motor carrier services bureau shall notify the bonding company of any
conviction of the dealer for a violation of laws related to the operations of
the dealership.
d. If the bond is
canceled, the vehicle and motor carrier services bureau shall notify the dealer
by first-class mail that the dealer's license shall be revoked on the same date
that the bond is canceled unless the bond is reinstated or a new bond is
filed.
e. If an applicant whose
dealer's license was revoked pursuant to paragraph 425.10(2) "J" establishes
that the applicant obtained a reinstated or new bond meeting the requirements
of this subrule that was effective on or before the date of cancellation, but
due to mistake or inadvertence failed to file the original bond with the
vehicle and motor carrier services bureau, the applicant may file the original
of the reinstated or new bond. Upon filing, the department will rescind the
revocation of the dealer's license.
(3)
Franchise.
a. An applicant who intends to sell new motor
vehicles or towable recreational vehicles shall submit to the vehicle and motor
carrier services bureau a copy of a signed franchise agreement with the
manufacturer or distributor of each make the applicant intends to
sell.
b. If a signed franchise
agreement is not available at the time of application, the department may
accept written evidence of a franchise which includes all of the following:
(1) The name and address of the applicant and
the manufacturer or distributor.
(2) The make of motor vehicle or towable
recreational vehicle that the applicant is authorized to sell.
(3) The applicant's area of responsibility as
stipulated in the franchise and certified on a form prescribed by the
department.
(4) The signature of
the manufacturer or distributor.
c. Nothing in this subrule shall be construed
to require a franchise agreement from a final-stage manufacturer applying for a
motor vehicle dealer license under rule
761-425.11 (322).
(4)
Corporate
applicants. If the applicant is a corporation, the applicant shall
certify on the application that the corporation complies with all applicable
state requirements for incorporation.
(5)
Principal place of
business. The applicant shall maintain a principal place of business,
which must be staffed during regular business hours. See rules
761-425.12 (322) and
761-425.14 (322) for further
requirements.
(6)
Zoning. The applicant shall provide to the vehicle and motor
carrier services bureau written evidence, issued by the office responsible for
the enforcement of zoning ordinances in the city or county where the
applicant's business is located, which states that the applicant's principal
place of business and any extensions comply with all applicable zoning
provisions or are a legal nonconforming use.
(7)
Separate licenses
required.
a. A separate license is
required for each city or township in which an applicant for a motor vehicle
dealer's license maintains a place of business.
b. A separate license is required for each
county in which an applicant for a towable recreational vehicle dealer's
license maintains a place of business.
(8)
Financial liability. The
applicant for a motor vehicle dealer's license shall certify on the application
that the applicant has the required financial liability coverage in the limits
as set forth in Iowa Code subsection
322.4(1). It is
the applicant's responsibility to ensure the required financial liability
coverage is continuous with no lapse in coverage as long as the applicant
maintains a valid dealer's license.
(9)
Ownership information.
a. If the owner of the business is an
individual, the application shall include the legal name, bona fide address,
and telephone number of the individual. If the owner is a partnership, the
application shall include the legal name, bona fide address, and telephone
number of two partners. If the owner is a corporation, the application shall
include the legal name, bona fide address, and telephone number of two
corporate officers. In all cases, the telephone number must be a number where
the individual, partner, or corporate officer can be reached during normal
business hours.
b. The application
shall include the federal employer identification number of the business.
However, if the business is owned by an individual who is not required to have
a federal employer identification number, the application shall include the
individual's social security number, Iowa nonoperator's identification number
or Iowa driver's license number.
(10) Reserved.
(11)
Verification of
compliance. The department shall verify the applicant's compliance
with all statutory and regulatory dealer licensing requirements.
This rule is intended to implement Iowa Code sections 322.1 to 322.15 and 322C.1 to 322C.6.
Notes
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