61-4-109. Privileges incident to license -- withdrawal upon certain conditions. (1) The privileges of a dealer licensed under the provisions of this part to use and display a set of dealer plates or a demonstrator plate on a motor vehicle or trailer held for sale by the dealer, to use and display an identification card on a power sports vehicle held for sale, and to issue a temporary registration permit, under the authority of 61-4-111 or 61-4-112, upon the sale of a motor vehicle, a power sports vehicle, or a trailer by the dealer are specifically conditioned on the dealer's satisfaction of the bond requirements of 61-4-101 and the general liability insurance coverage requirements of 61-4-123, without interruption or lapse.

(2) If the department is notified or determines that a dealer's bond or general liability insurance has lapsed or been canceled, all dealer plates, demonstrator plates, and identification cards issued to the dealer are subject to immediate confiscation and the dealer's authority, as an authorized agent, to issue temporary registration permits is subject to immediate withdrawal, upon demand, by the department or by a compliance specialist on behalf of the department. The dealer plates, demonstrator plates, and identification cards may not be returned to the dealer until the bond and general liability insurance requirements have been satisfied.

(3) A dealer whose privileges are withdrawn under this section may otherwise engage in the dealer's business operations during the period of withdrawal.

(4) If the lapse of bond or general liability insurance is not corrected within 30 days, the department may initiate administrative action to suspend or revoke the dealer's license under 61-4-105(2).