Trans 140.09(1)(1)Operating statement. If required by the department, the applicant shall submit an income statement or other financial statement. The department may require a dealer to submit updated financial information during the license year if questions arise regarding the dealer’s financial condition.
Trans 140.09(2)(2)Acceptable net worth.
Trans 140.09(2)(a)(a) The following guidelines are used in determining the acceptable level of net worth of an applicant:
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Trans 140.09(2)(b)(b) The department may deny the license of an applicant who fails to meet the net worth criteria set out in par. (a).
Trans 140.09 HistoryHistory: Cr. Register, March, 1985, No. 351, eff. 4-1-85; r. and recr. (2) (a), Register, February, 1996, No. 482, eff. 3-1-96; 2013 Wis. Act 363: am. (2) (a) Register May 2014 No. 701, eff. 6-1-14.
subch. II of ch. Trans 140Subchapter II — Claims Against Bonds of Department Licensees
Trans 140.20Trans 140.20Definitions. The terms used in this subchapter shall have the same meanings as in ch. 218, Stats., except as specifically provided below:
Trans 140.20(1)(1)“Claim arose against the bond or letter of credit of a licensee” means a situation in which a cause of action has accrued against the licensee. Unless otherwise provided by statute, a cause of action accrues where there exists a claim capable of present enforcement, a suable party against whom it may be enforced, and a party who has a present right to enforce it. A tort claim accrues when the injury is discovered or reasonably should have been discovered.
Trans 140.20 NoteNote: See ch. 893, Stats., and cases thereunder, governing the applicable statutes of limitation, and determination of the date when a cause of action accrues.
Trans 140.20(2)(2)“Commercial customer” means a private person who buys or agrees to buy one or more motor vehicles from the licensee for the person’s business or commercial use. A private person who sells, trades, or consigns to the licensee a motor vehicle used by the person primarily for business or commercial purposes is also a commercial customer.
Trans 140.20(3)(3)“Financial institution” means any person or organization authorized to do business under any state or federal law relating to financial institutions, including, without limitation, banks and trust companies, savings banks, building and loan associations, savings and loan associations, credit unions and sales finance companies. A credit corporation or similar financing organization of a motor vehicle manufacturer, factory branch, distributor or dealer is a financial institution. Any person who floor plans motor vehicles is a financial institution.
Trans 140.20(4)(4)“Floor plan” means to make a financing arrangement for the lending of money to a motor vehicle dealer so that he or she may purchase a motor vehicle to include in his or her inventory; the loan being secured by the motor vehicle while in the dealer’s possession and to be repaid when the motor vehicle is sold.
Trans 140.20(5)(5)“Motor vehicle” shall have the same meaning as s. 218.0101 (22), Stats., and includes mobile homes as defined by s. 218.0114, Stats. For the purposes of this subchapter, a moped as defined by s. 218.40 (2), Stats., is also a motor vehicle.
Trans 140.20(6)(6)“New motor vehicle” shall have the same meaning as s. Trans 137.03 (7).
Trans 140.20(7)(7)“Private person” means a person not licensed under ch. 218, Stats., and not required to be so licensed, for the purpose of the transaction from which the person’s claim arises. A financial institution, or a motor vehicle manufacturer, factory branch, factory representative, distributor, distributor representative, or a motor vehicle, mobile home, moped, salvage, trailer or auction dealer or a salesperson employed by such dealer is not a private person.
Trans 140.20(7m)(7m)The “period covered by the security” is co-extensive with the biennial license, issued under ch. 218, Stats., which is conditioned on providing the security in question. If the biennial license is extended by operation of s. 227.51 (2), Stats., the period covered by the security also is extended and remains co-extensive unless sooner cancelled by the surety.
Trans 140.20 NoteNote: Forms for bonds and letters of credit are available from the Dealer Section, Department of Transportation, P.O. Box 7909, Madison, Wisconsin 53707.
Trans 140.20(8)(8)“Retail customer” means a private person buying or agreeing to buy one or more motor vehicles from the bonded licensee for the private person’s personal, family or household use. A person buying or agreeing to buy a motor vehicle or mobile home to be used primarily for business or commercial purposes is not a retail customer. A private person who sells, trades, or consigns to the bonded licensee a motor vehicle used personally or by the person’s family or household, and not used primarily for business or commercial purposes, is a retail customer.
Trans 140.20(9)(9)“Secured party” means a lender, seller or other person, whose claim is based on a transaction in which there is, or was, a security agreement creating a security interest in the lender’s, seller’s or person’s favor, even if that interest is not sufficient to satisfy the claim. A person able to claim a lien under ss. 779.41, 779.415, or 779.43 (3), Stats., is a secured party.
Trans 140.20 HistoryHistory: Emerg. cr. eff. 10-16-85; cr. Register, July, 1986, No. 367, eff. 8-1-86; r. (1), renum. (1m) to be (1) and am., am. (2) and (7m), Register, February, 1996, No. 482, eff. 3-1-96; corrections in (5) made under s. 13.92 (4) (b) 7., Stats., Register March 2012 No. 675; CR 22-048: am. (7) Register July 2023 No. 811, eff. 8-1-23.
Trans 140.21Trans 140.21Allowed claims.
Trans 140.21(1)(1)A claim is an allowable claim if it satisfies each of the following requirements and is not excluded by sub. (2) or (3):
Trans 140.21(1)(a)(a) The claim shall be for monetary damages in the amount of an actual loss suffered by the claimant.
Trans 140.21(1)(b)(b) The claim arose during the period covered by the security.
Trans 140.21(1)(c)(c) The claimant’s loss shall be caused by an act of the licensee, or the claimant’s agents or employees, which is grounds for suspension or revocation of any of the following:
Trans 140.21(1)(c)1.1. A salesperson license or a motor vehicle dealer license, in the case of a secured salesperson or motor vehicle dealer, pursuant to s. 218.0116 (1) (a) to (gm), (im) 2., (j), (jm), (k), (m) or (n) to (p), Stats.
Trans 140.21(1)(c)2.2. A recreational vehicle dealer license, in the case of a bonded recreational vehicle dealer, pursuant to s. 218.11 (6), Stats.
Trans 140.21(1)(c)3.3. A salvage dealer license, in the case of a bonded salvage dealer, pursuant to s. 218.22 (3), Stats.