2526

LAWS OF MARYLAND

Ch. 675

15-305.

(a)  A license to deal in new [Class A] vehicles may not be
issued to any person unless the manufacturer or distributor of
the vehicles is in compliance with the surety bond requirements
of § 15-205 of this title.

(b)  A license to deal in new vehicles may be issued only
for[:

(1)  A sales branch or agency of the manufacturer of
the vehicles;

(2)  A distributor of new vehicles who holds a
franchise from the manufacturer of the vehicles; or

(3)  A] A dealer in new vehicles who holds a franchise
from:

[(i)] (1) The manufacturer of the vehicles; or

[(ii)] (2) A [franchised] distributor WHO IS
AUTHORIZED BY THE MANUFACTURER OR THE MANUFACTURER'S AUTHORIZED
IMPORTER of the vehicles.

(c)  If an applicant for a license to deal in new vehicles
seeks to qualify under subsection (b) [(2) or (3)] of this
section, the applicant shall submit with the application an exact
copy of the required franchise.

(d)  If a franchise required by this section is terminated
in accordance with § 15-209 of this title, the license of the
dealer shall be suspended automatically unless, before the
effective date of termination, the licensed dealer files
satisfactory evidence that the franchise has been extended. The
Administration immediately shall notify the licensee of the
suspension.

(E) EXCEPT FOR A PERSON WHO IS DEALING IN NEW VEHICLES
UNDER A TEMPORARY FINANCING ARRANGEMENT, THE ADMINISTRATION MAY
NOT ISSUE A LICENSE TO DEAL IN NEW VEHICLES TO A PERSON WHO IS
ACTING FOR A PARTNERSHIP OR CORPORATION THAT IS OWNED OR
CONTROLLED BY OR UNDER COMMON CONTROL WITH A MANUFACTURER OR
DISTRIBUTOR.

(E) NOTWITHSTANDING SUBSECTIONS (A) AND (F) OF THIS
SECTION, A MANUFACTURER OR DISTRIBUTOR MAY BE LICENSED AS A
DEALER ONLY IF THE MANUFACTURER OR DISTRIBUTOR;

(1) OPERATES TEMPORARILY A DEALERSHIP THAT;

(I) WAS PREVIOUSLY OWNED BY A FRANCHISED
DEALER; AND