WILLIAM DONALD SCHAEFER, Governor Ch. 191

(a)  A license to deal in new 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 a dealer in new vehicles who holds a franchise from:

(1)  The manufacturer of the vehicles; or

(2)  A 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) 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)  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

(ii) Is for sale to any qualified person at a
reasonable price; [or]

(2)  Operates a dealership in a bona fide relationship
in which an independent person:

(i) Has made a significant investment, subject
to loss, in the dealership; and

(ii) Can reasonably expect to acquire full
ownership of the dealership under reasonable terms and
conditions; OR

(3)  (I) IS A SECOND-STAGE MANUFACTURER AS DEFINED IN
§ 13-113.2(A)(7) OF THIS ARTICLE; AND

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