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Changes to Oregon’s Motor Vehicle Dealer Surety Bond Statutes

By: Vicki Smith

The Oregon legislature passed one of several bills that proposed to change the motor vehicle dealer surety bond laws. The governor signed SB 974 into law, with an effective date of January 1, 2018. The bill amends ORS 822.020 and 822.030. Here are the highlights:

  • Raises the bond amount from $40,000 to $50,000 (applies to new dealer certificates issued on or after January 1, 2018);
  • Decreases the amount a non-retail claimant can recover to $10,000;
  • For dealers dealing exclusively in motorcycles, mopeds, Class I all-terrain vehicles or snowmobiles, the bond is increased to $10,000 but only retail customers can bring a claim against the bond.

The interesting quirk of the bill is the application of the increased bond amount applying only to new vehicle dealer certificates issued next year as opposed to a new or renewed bond. Sureties should ask vehicle dealers subject to a claim when their last dealer certificate was issued. A link to the revised statutory language can be found here.