- (a) A dealer's name change shall require a new bond or a rider to the existing bond reflecting the new dealer name. The dealer may retain the same general distinguishing number.
- (b) A dealer shall notify the division in writing within 10 days if there is any change of ownership. A licensed dealer who proposes to sell and/or assign to another any interest in the licensed entity, whether a corporation or otherwise, so long as the physical location of the licensed entity remains the same, shall notify the division in writing within ten days of the change by filing an application to amend the license. If the sale or assignment of any portion of the business results in a change of entity, then the new entity must apply for and obtain a new license. Publicly-held corporations need only inform the division of a change in ownership if one person or entity acquires 10 percent or greater interest in the licensee.
- (c) If a dealership is operated as a sole proprietorship and the sole proprietor dies, the surviving spouse of the deceased dealer, or other individual deemed qualified by the division, shall submit to the division a bond rider adding his or her name to the bond for the remainder of the bond and license term. That person may continue dealership operations under the current dealer license until its expiration. In the event the qualifying individual is a surviving spouse, he or she may change the ownership of the dealership upon renewal of the license without applying for a new general distinguishing number by submitting additional information regarding ownership, business background, and financial responsibility as required for a new application.
Source Note:The provisions of this §215.145 adopted to be effective February 11, 2010, 35 TexReg 883.