§ 44-20-130 — Drafts not honored for payment - penalties

(1) If a motor
vehicle dealer, wholesaler, or used motor vehicle dealer issues a draft or check to a
motor vehicle dealer, wholesaler, used motor vehicle dealer, motor vehicle auction
house, or consignor and fails to honor the draft or check, then the license of the
licensee shall be subject to suspension pursuant to section 44-20-104 (3)(e)(I). The
license suspension shall be effective upon the date of any final decision against the
licensee based upon the unpaid draft or check. A licensee whose license has been
suspended pursuant to the provisions of this subsection (1) shall not be eligible for
reinstatement of the license and shall not be eligible to apply for any other license
issued under this part 1 unless it is demonstrated to the board that the unpaid draft
or check has been paid in full and that any fine imposed on the licensee pursuant to
subsection (2) of this section has been paid in full.

(2) Any motor vehicle dealer, wholesaler, or used motor vehicle dealer that
issues a draft or check to a motor vehicle dealer, wholesaler, used motor vehicle
dealer, motor vehicle auction house, or consignor and who fails to honor the draft or
check, causing loss to a third party, commits a misdemeanor and shall be punished
by a fine of two thousand five hundred dollars. Any fine collected for a violation of
this subsection (2) shall be awarded to the law enforcement agency that
investigated and issued the citation for the violation.

Legislative History

Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 85, � 2, effective October 1.