61-4-126. Claims against dealer, broker, wholesaler, or auto auction bonds. (1) A person who suffers loss or damage because of the unlawful conduct of a dealer, broker, wholesaler, or auto auction licensed under this title shall obtain a judgment from a court of competent jurisdiction prior to collecting on the bond of the dealer, broker, wholesaler, or auto auction. The judgment must set out a specific loss or damage amount and establish that the licensee's unlawful conduct caused the loss or damage, before payment on the bond is required.
(2) If claim is made on a bond by two or more persons who have obtained a judgment against a dealer, broker, wholesaler, or auto auction based on the unlawful conduct of the dealer, broker, wholesaler, or auto auction and the judgments in the aggregate exceed the amount of the bond, the proceeds of the bond must be divided between or among the claimants on a pro rata basis.
History: En. Sec. 8, Ch. 409, L. 1999; amd. Sec. 46, Ch. 329, L. 2007.