Surety Bond News

Anyone dealing with motor vehicle dealers in Virginia is going to be affected by this new legislation. The new law is named HB 1838 and caps the amount that can be reimbursed in a claim against a motor vehicle dealer’s bond; it’s now capped at $20,000. The previous law capped the amount to be recovered at the full amount of the bond, which is $50,000.

Surety bonds help separate legitimate businesses from disreputable ones. When a company cannot or avoids obtaining bonds needed to run a legal business, it’s usually a bad sign. (more…)

A new law was introduced concerning auto dealers within the State of Vermont. The new law, which is named SB 282, amplifies the quantity of the surety bond required of auto dealers. The present legislation requires a surety bond, a letter of credit or certificate of deposit in a quantity stretching from $5,000 to $15,000; this is calculated by the amount of units sold in the prior year. SB 282 boosts the minimum required bond quantity to $20,000 and the maximum bond amount to $35,000.

New and used car dealers in the State of Connecticut must follow new legislation that was recently enacted. The new law, which is referred to as SB 414 boosts the surety bond that is required of both new and used car dealers from $20,000 to $50,000. The present legislation authorizes the Commissioner of Motor Vehicles to require a increased surety bond amount from a license applicant; this is calculated by the applicants financial circumstance.

The state of Tennessee enacted a new law referred to as HB 2809. The new MVD (motor vehicle dealer) law raised the amount of the required license bond from $25,000 to an amount of at least $50,000; it also prohibits the use of letters of credit. The present law allowing the use of a certificate of deposit was preserved.