Before the issuance of a mobile home or manufactured home dealer's license, the applicant for the license shall furnish a continuous surety bond executed by the applicant as principal and executed by a surety company licensed and qualified to do business within this state. The bond must be in the amount of fifty thousand dollars, and be conditioned upon the faithful compliance by the applicant as a dealer, if the license is issued to the dealer, that the dealer will comply with all the laws of this state pertaining to the business, and regulating or being applicable to the business of the dealer as a dealer in mobile homes or manufactured homes, and indemnifying any person dealing or transacting business with the dealer in connection with any mobile home or manufactured home from any loss or damage occasioned by the failure of the dealer to comply with the provisions of the laws of this state. This includes the furnishing of a proper and valid certificate of title to the vendee of a mobile home within fifteen days of the sale of a mobile home, and to the vendee of a travel trailer as defined by section 57 -55-01 within fifteen days of the sale of a travel trailer. In addition, this includes furnishing to the vendee of a manufactured home within fifteen days of the sale of a manufactured home an affidavit of affixation that is obtained from the county recorder in the county where the real property is affixed, a letter of confirmation, and a bill of sale that includes a statement as to whether there are any liens or encumbrances on the manufactured home. The bond must be filed with the director before the issuance of the license provided for under this chapter. The aggregate liability of the surety to all persons for all losses or damages may not exceed the amount of the bond. Any third party sustaining injury within the terms of the bond may proceed against the principal and surety without making the state a party to any proceeding. The bond may be canceled by the surety, as to future liability, by giving written notice by certified mail, addressed to the principal at the address stated in the bond, and to the department. Thirty days after the mailing of the notice, the bond is null and void as to any liability thereafter arising. The surety remains liable, subject to the terms, conditions, and provisions of the bond, until the effective date of the cancellation.
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