§ 39-18-02 — Bond required

Before the issuance of a mobile home or manufactured home dealer's license, the applicant
for the license shall furnish a continuous surety bond executed by the applicant as principal and
executed by a surety company licensed and qualified to do business within this state. The bond
must be in the amount of fifty thousand dollars, and be conditioned upon the faithful compliance
by the applicant as a dealer, if the license is issued to the dealer, that the dealer will comply with
all the laws of this state pertaining to the business, and regulating or being applicable to the
business of the dealer as a dealer in mobile homes or manufactured homes, and indemnifying
any person dealing or transacting business with the dealer in connection with any mobile home
or manufactured home from any loss or damage occasioned by the failure of the dealer to
comply with the provisions of the laws of this state. This includes the furnishing of a proper and
valid certificate of title to the vendee of a mobile home within fifteen days of the sale of a mobile
home, and to the vendee of a travel trailer as defined by section 57-55-01 within fifteen days of

the sale of a travel trailer. In addition, this includes furnishing to the vendee of a manufactured
home within fifteen days of the sale of a manufactured home an affidavit of affixation that is
obtained from the county recorder in the county where the real property is affixed, a letter of
confirmation, and a bill of sale that includes a statement as to whether there are any liens or
encumbrances on the manufactured home. The bond must be filed with the director before the
issuance of the license provided for under this chapter. The aggregate liability of the surety to all
persons for all losses or damages may not exceed the amount of the bond. Any third party
sustaining injury within the terms of the bond may proceed against the principal and surety
without making the state a party to any proceeding. The bond may be canceled by the surety, as
to future liability, by giving written notice by certified mail, addressed to the principal at the
address stated in the bond, and to the department. Thirty days after the mailing of the notice,
the bond is null and void as to any liability thereafter arising. The surety remains liable, subject
to the terms, conditions, and provisions of the bond, until the effective date of the cancellation.