1226                                      LAWS OF MARYLAND                                Ch. 579

continuously in the amounts specified, to change the annual license fee schedule
for Class A and B vehicle manufacturers and to base such fee upon the number
of vehicles transferred by the manufacturer or distributor to the dealer, and to
make certain language corrections.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That [[Section 3-113.3]] Sections 3-113.3 and 5-704 of Article 66
1/2 of the Annotated Code of Maryland (1970 Replacement Volume and 1972
Supplement), title "Vehicle Laws," [[subtitle "Certificates of Title and
Registration of Vehicles," subheading "Part I. Certificates of Title," ]] subtitles.
'Certificates of Title and Registration of Vehicles,' and 'Licensing of Dealers,
Wreckers, Scrap Processors, Vehicle Salesmen, Manufacturers, Distributors and
Factory Branches,' respectively, subheadings 'Part I. Certificates of Title,' and
'Part VII. Manufacturers, Distributors, and Factory Branches,' respectively, is
hereby repealed and re-enacted, with amendments, to read as follows:

3-113.3.

Every manufacturer transferring a new Class A motor vehicle to a dealer
pursuant to the provisions of Section 3-113.1 of this Article or a used Class A
motor vehicle subject to a manufacturer's express or implied warranty shall file
and maintain with the Administration acceptable evidence of a surety bond in
[such] THE form as the Administration shall approve [in the sum of One
Hundred Thousand Dollars ($100,000.00)]. THE AMOUNT OF THE SURETY
BOND SHALL BE BASED ON THE NUMBER OF CLASS A VEHICLES
TRANSFERRED BY A MANUFACTURER TO DEALERS IN THE STATE
OF MARYLAND DURING THE PRECEDING REGISTRATION YEAR,
ACCORDING TO THE FOLLOWING SCHEDULE:

1 TO 50 CLASS A VEHICLES - $25,000.00 SURETY BOND
51 TO 500 CLASS A VEHICLES -- $50,000.00 SURETY BOND
501 TO 10,000 CLASS A VEHICLES - $100,000,00 SURETY BOND

OVER 10,000 CLASS A VEHICLES - $300,000.00 SURETY BOND. EACH
BOND SHALL REMAIN CONTINUOUSLY IN THE AMOUNTS
SPECIFIED ABOVE.

THE SURETY BOND SHALL BE for the use and benefit of the
Administration, a dealer, and the public who may suffer or sustain any loss by
reason of the breach of any MANUFACTURER'S express or implied warranty
in the sale of [such] a Class A motor vehicle by a dealer. THE
ADMINISTRATION SHALL ESTABLISH REASONABLE RULES AND
REGULATIONS APPLICABLE TO FILING AND MAINTAINING THE
SURETY BOND. EVERY MANUFACTURER SHALL FILE ONLY ONE (I)
BOND REGARDLESS OF THE NUMBER OF MAKES OF MOTOR
VEHICLES MANUFACTURED. In addition, every manufacturer shall be jointly
and severally liable with the dealer to the purchaser of a Class A motor vehicle, as
defined herein, for the breach of any MANUFACTURER'S express or implied
warranty in the sale of [such] THE Class A motor vehicle.

For the purposes of Sections 3-113.1 and 3-113.3 the term "manufacturer" shall
mean: (1) A person engaged in a business of constructing or assembling vehicles of
a type required to be registered under this article; or (2) A person importing
[such] THE vehicles for resale; or (3) A person who distributes [such] THE
vehicles of [such] THE manufacturer or importer.