§ 39-22-05 — Bond required

Before the issuance of a motor vehicle dealer's license, as provided by law, 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 the state of North
Dakota, which bond must run to the state of North Dakota, be in the amount of twenty-five
thousand dollars and be conditioned upon the faithful compliance by the applicant as a dealer, if
the license is issued to the dealer, that such dealer will comply with all of the statutes of the
state of North Dakota regulating or being applicable to the business of the dealer as a dealer in
motor vehicles, and indemnifying any person dealing or transacting business with the dealer in
connection with any motor vehicle from any loss or damage occasioned by the failure of the
dealer to comply with any of the provisions of this title, including the furnishing of a proper and
valid certificate of title to the motor vehicle involved in any such transaction, and that the bond
shall be filed with the director prior to the issuance of license provided by law. The aggregate
liability of the surety of all persons, however, may in no event 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 the proceedings. 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.