Automobile Fraud: 10.13.4.7 Surety’s Liability After a Bond Has Expired
In many states, the surety remains liable on the bond after its cancellation for any sale made or any liability accrued on the bond before cancellation.838 In Rhode Island, for example, the bond remains in effect for two years after a dealer has gone out of business.839 This is to indemnify anyone whose cause of action arose while the bond was in effect.