(A) No used car dealer’s license shall be issued until the proposed licensee shall deposit with the City Clerk a properly executed bond in the sum of $3,000 with good and sufficient surety or sureties to be approved by the City Attorney, which shall be conditioned so as to indemnify or reimburse any purchaser or seller of a motor vehicle in a sum equal to at least the amount of any payment or payments such purchaser or seller may have been induced to make through fraud, cheating or misrepresentation as to kind, quality or value of such used or secondhand motor vehicle whether the said fraud, cheating or misrepresentations were made by said used car dealer or by his or her employees, agents or salespersons either at the time of making the sale or through any advertisement of any character whatsoever, printed or circulated with reference to the used or secondhand motor vehicle or any part thereof.
(B) The used car dealer shall be required to make such indemnification or reimbursement only after conviction or adjudication of fraud, cheating or misrepresentation by a court of record in a civil or criminal action.
(Prior Code, § 40-140) (Ord. 610, passed 3-27-1978; Ord. 1477, passed 6-17-2019)