N.M. Admin. Code § 14.12.4.11

Current through Register Vol. 35, No. 21, November 5, 2024

Section 14.12.4.11 - MANUFACTURER'S CONSUMER PROTECTION BOND

A. Each manufacturer or manufacturer II re-furbisher shall maintain consumer protection bonds with the division equal to the number of locations or plants shipping units into New Mexico or constructing units in New Mexico. Each bond may be satisfied by a surety bond or other security in the form and in the amount prescribed by the division with a minimum amount for each location, fifty thousand dollars ($50,000.00) for a Manufacturer I and ten thousand dollars ($10,000.00) for a Manufacturer II-Re-furbisher. Each surety in the form of a cash consumer protection bond shall be posted with a financial institution located in New Mexico. Out-of-state manufacturers shall submit an affidavit consenting to service of process in New Mexico in connection with all claims filed pursuant to the provisions of the act.

B. Each bond shall be indemnity for any loss sustained by any consumer as a result of:

(1) a violation by the manufacturer of any provision of the act or of these regulations;

(2) a violation of the manufacturer's written warranty;

(3) fraud by the manufacturer in the execution or performance of a contract;

(4) the misrepresentation or the making of false promises by the manufacturer, or through the advertising, the agents, or the salespersons of the manufacturer;

(5) refusal, failure or inability of the manufacturer to transfer good and sufficient legal title to the consumer.

N.M. Admin. Code § 14.12.4.11

14.12.4.11 NMAC - Rp, 14.12.2.29 NMAC, 12-01-10