Motor club card plans; guarantee to pay security in amount of
fines and costs; fees; renewal; termination; distribution of lists of
acceptable cards
Sec. 8. (a) A motor club that is a domestic corporation or a foreign
corporation qualified to transact business in Indiana under IC 23-1 or
IC 23-7-1.1, or otherwise duly qualified to transact business in
Indiana under Indiana corporation law, may guarantee as security the
club's motor club card or any card of a motor club affiliated with the
motor club, if the motor club files a plan guaranteeing to pay the
security in the amount of the fine and costs. The ability to pay the
security in the amount of the fine and costs must be demonstrated by
evidence of the motor club's financial responsibility that must be:
(1) a balance sheet certified by a certified public accountant at
the end of the club's last available fiscal year showing net assets
of the motor club in excess of five hundred thousand dollars
($500,000); or
(2) a deposit by a surety company qualified to transact business
in Indiana of an annual bond in the amount of twenty-five
thousand dollars ($25,000) payable to the state guaranteeing, in
the amount of fines and costs, the motor club cards covered by
the plan when used as a security deposit.
(b) A motor club that is a foreign corporation not qualified to
transact business in Indiana under IC 23-1, IC 23-7-1.1, or any other
Indiana corporation law shall demonstrate the club's ability to
guarantee payment of the club's card or cards of an affiliated member
as a security deposit upon the filing of a plan with the secretary of
state guaranteeing payment of the fines and costs of the security and
a deposit, by a surety company qualified to transact business in
Indiana, of an annual bond in the amount of twenty-five thousand
dollars ($25,000) payable to the state, guaranteeing, in the amount of
fines and costs, the motor club's cards covered by the plan when used
as a security deposit.
(c) A motor club must, upon filing a plan with the secretary of
state, pay a filing fee of fifty dollars ($50).
(d) A motor club must annually renew the club's motor card plan.
Renewal must be made by filing before May 1 of each year a new
certified balance sheet or surety bond together with a renewal fee of
fifty dollars ($50) with the secretary of state.
(e) An approved plan may be terminated by the motor club sixty
(60) days after written notice or termination has been delivered to the
secretary of state. Upon failure of a motor club to guarantee a
security deposit, the motor club plan may be terminated by the
secretary of state under IC 4-21.5-3.
(f) Termination by the secretary of state does not relieve a motor
club of the club's obligation to pay judgments on cards covered by
the club's plan and accepted as security as provided in this chapter.
The attorney general may bring an action for the state in an Indiana
court against a motor club to enforce an obligation.
(g) The secretary of state shall, by June 1 of each year and at other
times necessary for the administration of this section, prepare and
distribute to all courts having jurisdiction over minor traffic
violations and to the superintendent of the state police department
lists of motor club cards that may be accepted as a security deposit.
As added by P.L.2-1991, SEC.18.
Last modified: May 27, 2006