Trans 140.21(2)(a)(a) Any claim by a claimant licensed under ch. 218, Stats., or required to be so licensed. Trans 140.21(2)(b)(b) Any claim by the licensee, the licensee’s employing dealer, if any, or the licensee’s agents, partners, stockholders or employes. Trans 140.21(2)(c)(c) Any claim arising from activities of the licensee which are not regulated by the department under ch. 218, Stats., specifically including, without limitation, claims for rent, mortgage payments, wages, commissions, personal services rendered and commercial transactions not directly related to the sale or purchase of a motor vehicle. Trans 140.21(2)(d)(d) Any claim by a manufacturer, factory branch, factory representative, distributor or distributor representative involving the sale or delivery of a new motor vehicle to the licensee. Trans 140.21(2)(e)(e) Any claim for interest or penalties, legal costs, attorney fees, or punitive damages except as otherwise expressly provided in sub. (5). Trans 140.21(3)(3) Any of the following acts by a claimant, as determined by the department, may be grounds for disallowing a claim: Trans 140.21(3)(a)(a) Making or offering a false statement, false or altered document, or other misrepresentation in support of a claim against the security; Trans 140.21(3)(b)(b) Making a claim based in whole or in part upon a transaction or an act by the claimant which is unlawful or contrary to statute, regulation or administrative rule, as determined by the department. Trans 140.21(3)(d)(d) Failure of the claimant to cooperate in the investigation of the claimant’s claim, including failure to provide additional supporting documentation or evidence for a claim or to provide other explanatory materials when that information is requested by the department and is readily available to, or known to, the claimant or is in the claimant’s possession or control. Trans 140.21(5)(a)(a) When a claimant is unable to obtain title to a motor vehicle because the licensee who held the vehicle for sale created a security interest in the motor vehicle and a manufacturer or financial institution is holding the title or Manufacturers Certificate of Origin (MCO) to ensure payment by the licensee at the time of sale, the claimant’s reasonable expenses, including legal costs and attorney fees, in obtaining requisite title documentation, are allowable claims against the security of the licensee. Trans 140.21(5)(b)(b) As alternatives to making the claim described in par. (a), a claimant in such a case may instead do any of the following: Trans 140.21(5)(b)1.1. Rescind the purchase contract and make a claim against the security of the licensee for the full purchase price of the vehicle. Trans 140.21 HistoryHistory: Emerg. cr. eff. 10-16-85; cr. Register, July, 1986, No. 367, eff. 8-1-86; am. (1) (a) to (c) 4., (d), (2) (a) to (e), (3) and (5) (a) to (b) 2., r. (1) (c) 5., renum. (1) (c) 6. to be 5., Register, February, 1996, No. 482, eff. 3-1-96; corrections in (1) (c) 1., 5. made under s. 13.92 (4) (b) 7., Stats., Register March 2012 No. 675. Trans 140.22Trans 140.22 Priority of claims. Allowable claims against the security shall be assigned to one of the following priority classes: Trans 140.22(1)(1) Salesperson, motor vehicle and recreational vehicle dealer securities. The priority classes of allowable claims against the security of any licensee except a wholesaler, salvage or auction dealer, in order of their priority, are as follows: Trans 140.22(1)(a)(a) Claims of retail customers including, without limitation, claims arising from a particular motor vehicle purchase from the licensee or from a particular motor vehicle sale by the licensee, claims for repairs warranted by the licensee, claims for failure to furnish title to a motor vehicle, claims for deposits against an uncompleted motor vehicle purchase transaction, and claims for the failure of the licensee to pay the claimant for a trade-in, a motor vehicle purchased by the licensee, or a consigned vehicle not returned to the consignor upon request. Trans 140.22(1)(b)(b) Claims of commercial customers including, without limitation, claims arising from a particular motor vehicle purchase from the licensee or from a particular motor vehicle sale by the licensee, claims for repairs warranted by the licensee, claims for failure to furnish title to a motor vehicle, claims for deposits against an uncompleted motor vehicle purchase transaction, and claims for the failure of the licensee to pay the claimant for a trade-in, a motor vehicle purchased by the licensee, or a consigned vehicle not returned to the consignor upon request. Trans 140.22(2)(2) Wholesaler, salvage and auction dealer bonds. The priority classes of allowable claims against a wholesaler bond, a salvage dealer bond or an auction dealer bond, in order of their priority, are as follows: Trans 140.22(2)(a)(a) Claims arising from transactions involving the sale or purchase of a particular motor vehicle, excluding the claims of a secured party, a financial institution, the department of revenue or the department of transportation. Trans 140.22(2)(b)(b) All other allowable claims, including claims of the department for title and registration fees. Trans 140.22 HistoryHistory: Emerg. cr. eff. 10-16-85; cr. Register, July, 1986, No. 367, eff. 8-1-86; am. (intro.), (1) (intro.) to (b), (2) (intro.) and (b), r. (1) (d) to (f), Register, February, 1996, No. 482, eff. 3-1-96. Trans 140.23(1)(1) The amount paid on each allowed claim shall be determined by the priority class of the claim. All claims in the same priority class shall be treated alike, beginning with the claims of the first priority class, as follows: Trans 140.23(1)(a)(a) The total amount necessary to pay all claims of the class in full shall be determined. Trans 140.23(1)(b)(b) If enough funds are available under the bond or letter of credit to do so, all claims of the class shall be paid in full. Trans 140.23(1)(c)(c) If, after all allowed claims of a class have been paid in full, funds remain available to pay additional claims, the allowed claims of the next priority class shall be paid, in accordance with pars. (a) to (d). Trans 140.23(1)(d)(d) If insufficient funds are available to pay all claims in a class, then each claim of the class shall be prorated according to the following formula: Trans 140.23(2)(2) When a class of claims has been prorated because there are insufficient funds available to pay the claims of the class in full, no payments shall be made upon allowed claims of the successive priority classes. Trans 140.23(3)(3) The aggregate total of all payments on all claims may not exceed the total amount of the bond or letter of credit available for payment of claims. Trans 140.23 HistoryHistory: Emerg. cr. eff. 10-16-85; cr. Register, July, 1986, No. 367, eff. 8-1-86; am. (1) (a) to (c) and (3), Register, February, 1996, No. 482, eff. 3-1-96. Trans 140.24(1)(1) Each claim shall be in writing and shall include all of the following: Trans 140.24(1)(a)(a) The name and address of the claimant and a telephone number where the claimant can be reached during normal business hours. Trans 140.24(1)(b)(b) A description of the nature of the claim and the transaction from which the claim arose, including any specific acts of the dealer which are grounds for suspension or revocation of the dealer’s license under ch. 218, Stats. Trans 140.24(1)(d)(d) The dollar amount of each separate loss or item of damage included in the total amount of the claim. Trans 140.24(1)(e)(e) Copies of all documents related to the transaction from which the claim arose. Trans 140.24(1)(f)(f) A statement of the status of any lawsuit regarding the claim and filed by the claimant against the licensee, including the name of the case, case number, court and a copy of any judgment entered. Trans 140.24(1)(g)(g) A description of the security interest, if any, held by the claimant including a copy of any security agreement related to the transaction from which the claim arose and a description of the secured property. Trans 140.24(1)(h)(h) A description of any licenses held by the claimant, if the claimant is licensed under ch. 218, Stats. Trans 140.24(1)(i)(i) A statement of whether the claimant is a retail customer, commercial customer, motor vehicle manufacturer, factory branch, factory representative, distributor, distributor representative, dealer, salesperson or a financial institution. Trans 140.24(1)(j)(j) A statement of whether the claimant is the licensee, the claimant’s employer agent or employee. Trans 140.24(2)(2) The department may adopt and provide forms for use by claimants. Trans 140.24 NoteNote: Copies of the form for making claims, MV-2542, Claim Against Bond of Licensee, are available from the Dealer License Section, Department of Transportation, P.O. Box 7909, Madison, Wisconsin 53707.
Trans 140.24 HistoryHistory: Emerg. cr. eff. 10-16-85; cr. Register, July, 1986, No. 367, eff. 8-1-86; am. (1), Register, February, 1996, No. 482, eff. 3-1-96. Trans 140.25Trans 140.25 Payment by surety or financial institution. Trans 140.25(1)(1) The surety or financial institution may, at any time, pay the amount of the bond or letter of credit to the department. Trans 140.25(2)(2) The department shall hold all payments on a particular bond or letter of credit in a separate account. This separate account may be interest bearing. The department may retain interest earned, if any, but shall not otherwise make any charges against the bond or letter of credit for administering the bond or letter of credit and determining claims against it. Trans 140.25(3)(3) If payment from the surety or financial institution is not received prior to, or during, the determination of claims by the department as provided in s. Trans 140.26, the department shall, after the final determination of timely claims, demand payment on the bond or letter of credit from the surety in an amount equal to the lesser of the face value of the bond or the aggregate total of the claims determined to be allowed. The surety or financial institution shall pay the amount demanded to the department within 30 days. The department may execute an appropriate written release for the surety or financial institution, if the surety or financial institution so requests, after payment is received. Trans 140.25(4)(4) If a surety or financial institution fails to tender the amount of the bond or letter of credit to the state, or to make timely payment of the amount demanded as provided in sub. (3), or otherwise fails to observe the provisions of this chapter, then the department may, in addition to any other available remedy, revoke its acceptance of the surety or financial institution as adequate to provide any bond or letter of credit of any persons secured under any statute or rule administered by the department. The department shall notify the surety company or financial institution of its intent to revoke its acceptance of the surety or financial institution. The surety company or financial institution may, within 30 days of such notice, request a hearing before the secretary or the secretary’s designee, prior to revocation of the department’s acceptance of the surety or financial institution. Trans 140.25 NoteNote: Final determinations of the department are subject to judicial review pursuant to ss. 227.15 to 227.21, Stats. Trans 140.25 HistoryHistory: Emerg. cr. eff. 10-16-85; cr. Register, July, 1986, No. 367, eff. 8-1-86; am. Register, February, 1996, No. 482, eff. 3-1-96. Trans 140.26Trans 140.26 Procedure for determination of claims against the dealer bond or letter of credit. Trans 140.26(1)(a)(a) Any claim made against the bond or letter of credit of a licensee, any request by a surety for a department determination of a claim, any notification of the department by a licensee of the licensee’s termination of business, any filing of a bankruptcy petition by a licensee, or any payment of any part of a bond or letter of credit by the surety or financial institution to the department may be regarded by the department as a petition for declaratory ruling under s. 227.41, Stats. Trans 140.26(1)(b)(b) If the petition does not initially comply with the required format of s. 227.41 (2), Stats., the department may request that the additional materials needed to satisfy s. 227.41 (2), Stats., be furnished. Trans 140.26(2)(a)(a) The department shall provide notice to all interested parties by publishing notice, pursuant to s. 985.07 (1), Stats., in a newspaper of general circulation in the area of the licensed address of the licensee and by mailing notice to all interested parties known to the department. Trans 140.26(2)(b)4.4. The deadline for the submission of claims against the bond or letter of credit. Trans 140.26(2)(b)5.5. The address from which to request claims forms and to which to submit claims. Trans 140.26(3)(3) Deadline for claims. The deadline for the submission of claims shall be 60 days after the final insertion of the published notice required by sub. (2). Trans 140.26(4)(a)(a) The department shall evaluate each claim received, request additional documentation or clarification from the claimant as necessary and make a preliminary determination of the allowance, amount and priority class of the claim. Trans 140.26(4)(b)(b) In determining the allowance, amount and priority class of a claim, the department shall give full faith and credit to applicable findings of fact and judgments entered by a court in an action involving the claim in which the claimant and the licensee were opposing parties. Trans 140.26(5)(a)(a) Preliminary determination of claims. When a preliminary determination of all claims received prior to the deadline for filing claims is completed, the compilation of all those preliminary determinations shall be sent to each claimant, the surety, if any, and the licensee, who shall all be parties to any hearing under sub. (6). The compilation of preliminary determinations may include an estimate of the amount which would be paid on each claim, in accordance with s. Trans 140.23, if the preliminary determinations are not contested. Trans 140.26(5)(b)(b) Deadline for objection. Each claimant, the surety, if any, or the licensee shall have 30 days from the date the preliminary determination is mailed to the claimant to object to the preliminary determination of the allowance, amount or priority class of any claim. Trans 140.26(5)(c)(c) Notice of objection. The party objecting to a preliminary determination shall furnish timely notice, pursuant to par. (b), of the grounds for the party’s objection to the department, the surety, if any, and the licensee. If the preliminary determination objected to is of a claim by another claimant, timely notice of the grounds for the objection shall also be made by the objector to that claimant. Trans 140.26(5)(d)(d) Adoption of preliminary determinations. If the preliminary determinations are not disputed the scheduled public hearing may be cancelled and the preliminary determinations shall be adopted by the department. Trans 140.26(6)(a)(a) If there is a dispute of a preliminary determination, a hearing shall be held before a hearing examiner appointed by the department. The claimant, surety, licensee, and any party objecting to the preliminary determination of the claim may present evidence, including witnesses and argument. Trans 140.26(6)(b)(b) The hearing shall be scheduled for a date within 120 days of the publication of the notice provided in sub. (2). The hearing may subsequently be rescheduled to another date, time or place at the discretion of the department and upon notice to all claimants, the licensee and the surety, if any. Trans 140.26(7)(7) Hearing examiner determination final. The determination of the hearing examiner regarding the allowance, amount and priority class of each claim shall be the final decision of the department. Trans 140.26(8)(a)(a) The final decision of the department shall be in writing and sent to each claimant, the surety or financial institution and the licensee. Payments from the bond, in accordance with the final decision shall not be made until at least 10 days after the final decision is sent to each party.
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