N.M. Admin. Code § 14.12.4.12

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

Section 14.12.4.12 - DEALER'S CONSUMER PROTECTION BOND

A. Each dealer shall maintain consumer protection bonds with the division equal to the number of locations at which the dealer does business. 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 of fifty thousand dollars ($50,000.00) for each location. Each surety in the form of cash consumer protection bond shall be posted with a financial institution located in New Mexico. Out of state dealers 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 the consumer as a result of:

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

(2) fraud by the dealer in the execution or performance of a contract;

(3) the misrepresentation or making a false promise by the dealer, or through the advertising, the agents, or the salespersons of the dealer;

(4) a violation of the dealer's written warranty;

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

N.M. Admin. Code § 14.12.4.12

14.12.4.12 NMAC - Rp, 14.12.2.30 NMAC, 12-01-10