Acts and Regulations

M-17 - Motor Vehicle Act

Section 54
Disposition versions

Full text
Application for licence, bond
54(1)No person unless licensed so to do by the Registrar, under this Act, shall carry on or conduct the business of
(a) a dealer or sub-dealer in new or used motor vehicles, or new trailers or new semi-trailers of a type subject to registration, a heavy equipment dealer or a farm machinery dealer, or
(b) wrecking or dismantling motor vehicles for resale of the parts thereof.
54(2)An application for a dealer’s, sub-dealer’s, used motor vehicle dealer’s or wrecker’s licence shall be made on a form provided by the Registrar and shall be accompanied by
(a) a letter dated no earlier than six months before the date of application and signed by an appropriate official of the local authority where the proposed business for which the application for a licence is made is or will be situated, stating that it is in conformity with the planning and zoning requirements as provided for in any plans adopted by by-law or in any by-laws or regulations made under the Community Planning Act,
(b) the security bond required under subsection (3), dated no earlier than six months before the date of application, and
(c) the fee prescribed by regulation.
54(3)An applicant making application under subsection (2) and a holder of a subsisting dealer’s licence shall furnish and maintain a security bond for the purpose of compensating purchasers for losses due to dishonest conduct, misappropriation or wrongful conversion of money or property intrusted to or received by the dealer or a dealer’s employee or agent arising out of the purchase of a motor vehicle, heavy equipment, farm machinery, trailers and semi-trailers.
54(4)The bond required under subsection (3) shall be on a form provided by the Registrar and in an amount prescribed by the regulations.
54(5)For the purpose of bringing an action arising out of an act or omission occurring during the security term of a bond, the bond continues in force for two years after the end of the security term; and for the purpose of making any claim in respect of the bond, the action shall be brought within the two-year period.
54(6)The obligee may, upon notice in writing to the surety before the expiration of the period during which the bond continues in force pursuant to subsection (5), extend that period for a further period of not longer than one year.
1955, c.13, s.47; 1967, c.54, s.5A; 1968, c.38, s.5; 1977, c.32, s.8; 1996, c.43, s.5; 1998, c.30, s.7; 2023, c.8, s.1
Application for licence, bond
54(1)No person unless licensed so to do by the Registrar, under this Act, shall carry on or conduct the business of
(a) a dealer or sub-dealer in new or used motor vehicles, or new trailers or new semi-trailers of a type subject to registration, a heavy equipment dealer or a farm machinery dealer, or
(b) wrecking or dismantling motor vehicles for resale of the parts thereof.
54(2)Application for a dealer’s, sub-dealer’s, used motor vehicle dealer’s or wrecker’s licence shall be made on a form provided by the Registrar and shall contain the name and address of the applicant; and when the applicant is a partnership, the name and address of each partner; or when the applicant is a corporation, the names of the principal officers of the corporation, and the place where the business for which the licence is applied is to be conducted, and the nature of such business, and such other information as may be required by the Registrar and every such application shall be verified by the oath or affirmation of the applicant, if an individual, or in the event an applicant is a partnership or corporation, then by a partner or officer thereof, and every such application shall be accompanied by the fee required by law.
54(3)An applicant making application under subsection (2) and a holder of a subsisting dealer’s licence shall furnish and maintain a security bond for the purpose of compensating purchasers for losses due to dishonest conduct, misappropriation or wrongful conversion of money or property intrusted to or received by the dealer or a dealer’s employee or agent arising out of the purchase of a motor vehicle, heavy equipment, farm machinery, trailers and semi-trailers.
54(4)The bond required under subsection (3) shall be on a form provided by the Registrar and in an amount prescribed by the regulations.
54(5)For the purpose of bringing an action arising out of an act or omission occurring during the security term of a bond, the bond continues in force for two years after the end of the security term; and for the purpose of making any claim in respect of the bond, the action shall be brought within the two-year period.
54(6)The obligee may, upon notice in writing to the surety before the expiration of the period during which the bond continues in force pursuant to subsection (5), extend that period for a further period of not longer than one year.
1955, c.13, s.47; 1967, c.54, s.5A; 1968, c.38, s.5; 1977, c.32, s.8; 1996, c.43, s.5; 1998, c.30, s.7