N.Y. General Business Law § 740-a: Automobile broker business surety bond

§ 740-a. Automobile broker business surety bond. 1. Automobile broker

businesses shall obtain and continue in effect a surety bond in an

amount of one hundred thousand dollars executed by a surety company

authorized to transact business in the state by the department of

financial services of the state or its successor. The bonds shall be

approved as to form by the secretary of state and shall be conditioned

on the automobile broker business' payment of all valid bank drafts,

including checks, drawn for the purchase of motor vehicles and

safekeeping of all customer deposits related to the sale of a motor

vehicle between the time of receipt of such customer deposit and the

transfer of good title to the vehicle to the customer.

2. Recovery against a bond may be made by a person, including the

state, who obtains a judgment against the automobile broker business for

an act or omission on which the bond is conditioned if the act or

omission occurred during the term of the bond. The total liability

imposed on the surety under this section for all breaches of the bond

condition is limited to the face amount of the bond. Such liability may

include, but is not limited to, the amount of the valid bank drafts,

including checks, drawn by the automobile broker business for the

purchase of motor vehicles. In no event shall the surety on a bond be

liable for total claims in excess of the bond amount, regardless of the

number or nature of claims made against the bond or the number of years

the bond remained in force.

3. Any surety issuing a bond pursuant to this subdivision shall be

required to provide sixty days' notice to the secretary of state prior

to the effective date of cancellation of the bond.