© Éditeur officiel du Québec
Updated to 1 December 2014
This document has official status.


chapter C-24.2, r. 7

Regulation respecting dealers and recyclers

Highway Safety Code
 (chapter C-24.2, s. 620, pars. 1 to 4)

DIVISION  I
DEFINITIONS

1.  In this Regulation,

“net mass” means net mass as defined in the Regulation respecting road vehicle registration (chapter C-24.2, r. 29);

“snowmobile” means a snowmobile as defined in the Regulation respecting road vehicle registration.

O.C. 1693-87, s. 1.

DIVISION  II
CONDITIONS AND FORMALITIES OF ISSUE OF A LICENCE

O.C. 1693-87, Div. IIO.C. 1427-97, s. 1.

2.  For the issue of a dealer's or recycler's licence, a person must meet the following conditions:

  (1)    be of full age;

  (2)    supply his name and the address of his establishment;

  (3)    have an establishment where road vehicles, vehicle carcasses or vehicle parts intended for sale are stored;

  (4)    furnish a copy of the title deed or of the lease of the establishment referred to in subparagraph 3 and of every other piece of land where road vehicles, vehicle carcasses or vehicle parts intended for sale are stored, as well as an attestation from the municipality that the establishment complies with zoning by-laws and the interim control by-laws in force;

  (5)    supply a duly certified copy of the declaration of partnership, the declaration of the firm's name, letters patent or statutes;

  (6)    in the case where the person applying for the issue is a partnership or legal person, supply a duly certified copy of the resolution mandating a natural person to file an application;

  (7)    furnish the security prescribed in sections 152 and 154 of the Highway Safety Code (chapter C-24.2) by complying with the terms and conditions established in Division VI;

  (8)    indicate, in the case of an application for a dealer's licence, among the following road vehicle categories, the one for which the licence is required:

  (a)      vehicles whose net mass is 5,500 kg and over, other than farm machines;

  (b)      vehicles whose net mass is less than 5,500 kg, other than motorcycles, snowmobiles and mopeds and farm machines and other than trailers and semi-trailers whose net mass is under 1,300 kg;

  (c)      motorcycles, snowmobiles, mopeds and farm machines;

  (9)    supply the business number assigned by the enterprise registrar under the Act respecting the legal publicity of enterprises (chapter P-44.1);

  (10)    (subparagraph revoked);

  (11)    not have, during the 5 years preceding his application, been convicted of a criminal offence for receiving stolen goods, fraud or theft involving a road vehicle or its parts unless a pardon was obtained;

  (12)    be made up solely of shareholders, partners, directors or employees meeting the condition mentioned in subparagraph 11;

  (13)    produce a written application on the form dealing with the matters prescribed in subparagraphs 1 through 12 which is supplied by the Société de l'assurance automobile du Québec and accompanied by the payment of the fees prescribed by the Regulation respecting fees exigible under the Highway Safety Code and the return of confiscated objects (chapter C-24.2, r. 27).

In the case of a licence renewal, the person shall file his application along with the documents prescribed in subparagraphs 5 through 7 and 13 of the first paragraph and with payment of the fees prescribed by the Regulation respecting fees exigible under the Highway Safety Code and the return of confiscated objects not less than 20 days before the expiry date of his licence.

O.C. 1693-87, s. 2; O.C. 1427-97, s. 2; O.C. 998-2010, s. 1.

DIVISION  III
CONTENTS OF A LICENCE

O.C. 1693-87, Div. IIIO.C. 1427-97, s. 3.

3.  A licence must contain the following particulars:

  (1)    mention that it is a dealer's licence or a recycler's licence, as the case may be;

  (2)    the licence number;

  (3)    the identification number of the licence holder;

  (4)    the date of its coming into force and of its expiry;

  (5)    the name of the enterprise;

  (6)    the address of the establishment;

  (7)    the signature or signature facsimile of the person authorized by the Société to sign the licence.

O.C. 1693-87, s. 3; O.C. 1427-97, s. 4.

DIVISION  IV
PERIOD OF VALIDITY OF THE LICENCE

O.C. 1693-87, Div. IVO.C. 1427-97, s. 5.

4.  A licence is valid for a period of 24 months from the date of its issue.

Nevertheless, any licence which is scheduled to expire between 1 December 1997 and 30 November 1998 may be renewed for a period of 12 months.

From 1 December 1998, all licences are renewable for a 24 month period.

O.C. 1693-87, s. 4; O.C. 1427-97, s. 6.

DIVISION  V
CONDITIONS ATTACHED TO THE LICENCE

O.C. 1693-87, Div. VO.C. 1427-97, s. 7.

5.  The holder of a licence must keep such licence posted in public view at the sales location.

O.C. 1693-87, s. 5.

6.    (Revoked).

O.C. 1693-87, s. 6; O.C. 1427-97, s. 8.

7.  The holder of a licence must advise the Société of any change relating to the matters referred to in subparagraphs 1 through 12 of the first paragraph of section 2 within 30 days following that change.

The holder must supply the document attesting to the change referred to in the first paragraph.

O.C. 1693-87, s. 7; O.C. 1427-97, s. 9.

8.  The holder of a licence shall, during the period of validity of the licence continue to meet the conditions of issue prescribed in subparagraphs 3, 4, 7, 11 and 12 of the first paragraph of section 2.

O.C. 1693-87, s. 8; O.C. 1427-97, s. 10.

9.    (Revoked).

O.C. 1693-87, s. 9; O.C. 1427-97, s. 11.

10.  The holder of a licence shall sell road vehicles at only one location.

This place must be the establishment referred to in subparagraph 3 of the first paragraph of section 2.

O.C. 1693-87, s. 10; O.C. 1427-97, s. 12.

11.  The holder of a licence shall not alienate such licence.

However, in the event of the death of the licence holder, the heir or liquidator of the succession, as the case may be, may, after having given written notice of the death to the Société, obtain from the latter authorization to continue the activities authorized by the licence until its expiry.

O.C. 1693-87, s. 11; O.C. 1427-97, s. 13.

12.  The holder of a licence must indicate the licence number on any sales contract pertaining to a road vehicle or one of its major components.

O.C. 1693-87, s. 12; O.C. 1427-97, s. 14.

DIVISION  V.I
REGISTER OF THE RECYCLER AND MAJOR COMPONENTS

O.C. 1427-97, s. 15.

12.1.  The register of the recycler is a directory on paper or computerized record of all the information prescribed by section 155 of the Code.

O.C. 1427-97, s. 15.

12.2.  The information found in the register must be kept for a period of 2 years after the date of the sale of the road vehicle or major component.

O.C. 1427-97, s. 15.

12.3.  The register must be kept at the recycler's establishment at all times.

O.C. 1427-97, s. 15.

12.4.  For the purposes of section 155 of the Code, “major components” are:

  (1)    for all road vehicles: the motor, the chassis frame and light alloy wheels;

  (2)    for all road vehicles except for a motorcycle and a moped: the transmission, the rear axle, the hood, the fenders, the side panels, the trunk lid, the doors, the seats, the dashboard, the siderails whether or not complete, the grill, the roof, the front pillar, centre pillar and rear pillar, the rocker panel and the tailgate;

  (3)    the fork and the faring of a motorcycle and a moped;

  (4)    the cab and the body of a truck and a light truck.

O.C. 1427-97, s. 15.

DIVISION  VI
SECURITY

13.  The person applying for a licence must file with his application a security furnished through an individual or group guarantee bond in his name and issued by a guaranty company authorized to do business in Québec on a form provided by the Société.

Where the surety has paid a debt, the licence holder must provide additional security of that amount such that the total security is always equal to the amount prescribed by section 19 or 20.

O.C. 1693-87, s. 13; O.C. 1427-97, s. 16.

14.  The individual guarantee bond must contain the following particulars:

  (1)    the security number;

  (2)    the security amount;

  (3)    the name and address of the surety;

  (4)    the name and address of the licence applicant;

  (5)    the obligations of the surety provided for in the Code;

  (6)    mention that the surety can terminate the security by giving not less than 45 days, notice in writing to the Société;

  (7)    mention that the surety forsakes the benefit of discussion;

  (8)    the statement that the liability of the surety for the duration of the guarantee is limited to the amount prescribed by section 19 or 20;

  (9)    the date of coming into force of the security and that of its expiry;

  (10)    the date of the conclusion of the security and the signature of the licence applicant, of the duly authorized officer of the surety and of the witness present at the signing of the applicant and the officer.

O.C. 1693-87, s. 14; O.C. 1427-97, s. 17.

15.  The group guarantee bond must contain the following particulars:

  (1)    the security number;

  (2)    the security amount;

  (3)    the name and address of the surety;

  (4)    the name and address of the group constituted as a legal person;

  (5)    the obligations of the surety provided for in the Code in favour of all members of the group referred to in paragraph 4;

  (6)    mention that the surety can terminate the security with regard to a member of the group referred to in paragraph 4 by giving not less than 45 days' notice in writing to the Société;

  (7)    mention that the surety forsakes the benefit of discussion;

  (8)    the statement that the liability of the surety for the duration of the guarantee is limited to the amount prescribed by section 19 or 20;

  (9)    the date of coming into force of the security and that of its expiry;

  (10)    the date of the conclusion of the security and the signature of a duly authorized officer of the group, of a duly authorized officer of the surety and of a witness present at the signing of both officers.

O.C. 1693-87, s. 15; O.C. 1427-97, s. 18.

16.  A person applying for a licence and who is covered by a group guarantee bond shall supply the Société with its member certificate.

O.C. 1693-87, s. 16; O.C. 1427-97, s. 19.

17.  The member certificate must contain the following particulars:

  (1)    the surety name;

  (2)    the certificate number;

  (3)    the security amount;

  (4)    the group designation;

  (5)    certification through the group surety referred to in paragraph 4 of section 15 that the applicant is a member of such group and is covered by the group guarantee bond;

  (6)    the number of the group guarantee bond;

  (7)    the signature of the surety.

O.C. 1693-87, s. 17.

18.  A security issued by a company whose head office is located outside Québec can be furnished through a certified copy of such security.

O.C. 1693-87, s. 18.

19.  The amount of the security provided for in section 13, required of the applicant of a dealer's licence, is set in accordance with the category of road vehicles sold according to the following list:

  (1)    an amount of $200,000 for a vehicle business whose vehicles have a net mass equal to or higher than 5,500 kg, other than farm machines;

  (2)    an amount of $100,000 for a vehicle business whose vehicles have a net mass less than 5,500 kg, other than motorcycles, snowmobiles, mopeds and farm machines and other than trailers and semi-trailers whose net mass is less than 1,300 kg;

  (3)    an amount of $25,000 for a business dealing in motorcycles, snowmobiles, mopeds and farm machines.

O.C. 1693-87, s. 19; O.C. 1427-97, s. 20; O.C. 998-2010, s. 2.

20.  The amount of a security provided for in section 13, required of an applicant of a recycler's licence, is set at $50,000.

O.C. 1693-87, s. 20.

21.  For the concomitant issue of a dealer's licence and a recycler's licence, the applicant must file with his application only one security covering the amounts applicable to each one of the licences, in accordance with sections 19 and 20.

O.C. 1693-87, s. 21.

DIVISION  VII
FINAL PROVISIONS

22.  The Regulation respecting motor vehicle registration (R.R.Q., 1981, c. C-24, r. 16) is revoked.

O.C. 1693-87, s. 22.

23.    (Omitted).

O.C. 1693-87, s. 23.



REFERENCES
O.C. 1693-87, 1987 G.O. 2, 3955
S.Q. 1990, c. 19, s. 11
O.C. 1427-97, 1997 G.O. 2, 5457
O.C. 998-2010, 2010 G.O. 2, 3189
S.Q. 2010, c. 7, s. 282