46.2-1527.5 - Limitations on recovery from Fund.
§ 46.2-1527.5. Limitations on recovery from Fund.
The maximum claim of one judgment creditor against the Fund based on anunpaid final judgment arising out of any loss or damage by reason of a claimsubmitted under § 46.2-1527.2 or § 46.2-1527.3 involving a singletransaction, shall be limited to $20,000, regardless of the amount of theunpaid final judgment of one judgment creditor.
The aggregate of claims against the Fund based on unpaid final judgmentsarising out of any loss or damage by reason of a claim submitted under §46.2-1527.3 involving more than one transaction shall be limited to $100,000,regardless of the total amounts of the unpaid final judgments of judgmentcreditors.
However, aggregate claims against the Fund under § 46.2-1527.2 shall belimited to $50,000 and then only after the dealer's $50,000 bond has beenexhausted.
If a claim has been made against the Fund, and the Board has reason tobelieve that there may be additional claims against the Fund from othertransactions involving the same licensee or registrant, the Board maywithhold any payment from the Fund involving the licensee or registrant for aperiod not to exceed the end of the relevant license or registration period.After this period, if the aggregate of claims against the licensee orregistrant exceeds $100,000, a total of $100,000 shall be prorated among theclaimants and paid from the Fund in proportion to the amounts of their unpaidfinal judgments against the licensee or registrant.
However, claims against motor vehicle dealers and salespersons participatingin the Motor Vehicle Transaction Recovery Fund pursuant to § 46.2-1527.2shall be prorated when the aggregate exceeds $50,000. Claims shall beprorated only after the dealer's $50,000 bond has been exhausted.
On receipt of a verified claim filed against the Fund, the Board shallforthwith notify the licensee or registrant who is the subject of the unpaidjudgment that a verified claim has been filed and that the licensee orregistrant should satisfy the judgment debt. If the judgment debt is notfully satisfied 30 days following the date of the notification by the Board,the Board shall make payment from the Fund subject to the other limitationscontained in this article.
Excluded from the amount of any unpaid final judgment on which a claimagainst the Fund is based shall be any sums representing (i) interest, (ii)punitive damages, and (iii) exemplary damages. Awards from the Fund shall belimited to reimbursement of costs paid to the dealer for all charges relatedto the vehicle including without limitation, the sales price, taxes,insurance, and repairs; other out of pocket costs related to the purchase,insuring and registration of the vehicle, and to the loss of use of thevehicle by the purchaser.
If at any time the Fund is insufficient to fully satisfy any claims or claimfiled with the Board and authorized by this article, the Board shall pay suchclaims, claim, or portion thereof to the claimants in the order that theclaims were filed with the Board. However, claims by retail purchasers shalltake precedence over other claims.
(1994, c. 478; 1995, cc. 767, 816; 1998, c. 325; 2001, c. 194; 2003, c. 331;2006, c. 172; 2007, c. 826.)