| 1 | Representative(s) Brown offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Between line 1909 and 1910, insert: |
| 5 | Section 57. Subsection (15) of section 320.77, Florida |
| 6 | Statutes, is amended to read: |
| 7 | 320.77 License required of mobile home dealers.-- |
| 8 | (15) SURETY BOND, CASH BOND, OR IRREVOCABLE LETTER OF |
| 9 | CREDIT REQUIRED.-- |
| 10 | (a) Before any license shall be issued or renewed, the |
| 11 | applicant or licensee shall deliver to the department a good and |
| 12 | sufficient surety bond, cash bond, or irrevocable letter of |
| 13 | credit, executed by the applicant or licensee as principal and |
| 14 | by a surety company qualified to do business in the state as |
| 15 | surety. The bond or irrevocable letter of credit shall be in a |
| 16 | form to be approved by the department and shall be conditioned |
| 17 | upon the dealer's complying with the conditions of any written |
| 18 | contract made by the dealer in connection with the sale, |
| 19 | exchange, or improvement of any mobile home and his or her not |
| 20 | violating any of the provisions of chapter 319 or this chapter |
| 21 | in the conduct of the business for which the dealer is licensed. |
| 22 | The bond or irrevocable letter of credit shall be to the |
| 23 | department and in favor of any retail customer who shall suffer |
| 24 | any loss as a result of any violation of the conditions |
| 25 | hereinabove contained in this section. The bond or irrevocable |
| 26 | letter of credit shall be for the license period, and a new bond |
| 27 | or irrevocable letter of credit or a proper continuation |
| 28 | certificate shall be delivered to the department at the |
| 29 | beginning of each license period. However, the aggregate |
| 30 | liability of the surety in any one license year shall in no |
| 31 | event exceed the sum of such bond, or, in the case of a letter |
| 32 | of credit, the aggregate liability of the issuing bank shall not |
| 33 | exceed the sum of the credit. The amount of the bond required |
| 34 | shall be as follows: |
| 35 | 1. A single dealer who buys, sells, or deals in mobile |
| 36 | homes and who has four or fewer supplemental licenses shall |
| 37 | provide a surety bond, cash bond, or irrevocable letter of |
| 38 | credit executed by the dealer applicant or licensee in the |
| 39 | amount of $25,000. |
| 40 | 2. A single dealer who buys, sells, or deals in mobile |
| 41 | homes and who has more than four supplemental licenses shall |
| 42 | provide a surety bond, cash bond, or irrevocable letter of |
| 43 | credit executed by the dealer applicant or licensee in the |
| 44 | amount of $50,000. |
| 45 |
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| 46 | For the purposes of this paragraph, any person who buys, sells, |
| 47 | or deals in both mobile homes and recreational vehicles shall |
| 48 | provide the same surety bond required of dealers who buy, sell, |
| 49 | or deal in mobile homes only. |
| 50 | (b) Surety bonds shall be executed by a surety company |
| 51 | authorized to do business in the state as surety, and |
| 52 | irrevocable letters of credit shall be issued by a bank |
| 53 | authorized to do business in the state as a bank. |
| 54 | (c) Irrevocable letters of credit shall be engaged by a |
| 55 | bank as an agreement to honor demands for payment as specified |
| 56 | in this section. |
| 57 | (d)(b) The department shall, upon denial, suspension, or |
| 58 | revocation of any license, notify the surety company of the |
| 59 | licensee, or bank issuing an irrevocable letter of credit for |
| 60 | the licensee, in writing, that the license has been denied, |
| 61 | suspended, or revoked and shall state the reason for such |
| 62 | denial, suspension, or revocation. |
| 63 | (e)(c) Any surety company which pays any claim against the |
| 64 | bond of any licensee or any bank which honors a demand for |
| 65 | payment as a condition specified in a letter of credit of a |
| 66 | licensee shall notify the department, in writing, that it has |
| 67 | paid such action has been taken a claim and shall state the |
| 68 | amount of the claim or payment. |
| 69 | (f)(d) Any surety company which cancels the bond of any |
| 70 | licensee or any bank which cancels an irrevocable letter of |
| 71 | credit shall notify the department, in writing, of such |
| 72 | cancellation, giving reason for the cancellation. |
| 73 |
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| 74 |
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| 75 | ================ T I T L E A M E N D M E N T ============= |
| 76 | Remove line(s) 157 and insert: |
| 77 | titling fees; providing certain penalties; amending s. |
| 78 | 320.77, F.S.; providing that mobile home dealers may |
| 79 | provide a cash bond or letter of credit in lieu of a |
| 80 | required surety bond; amending s. |