Surety Bond News

Nevada introduced a new bill concerning the Department of Motor Vehicles. The new bill, which is titled AB 455, authorizes the Department of Motor Vehicles to enter into agreements with motor carriers and service provides to allow them to register vehicles and renew and transfer registrations without applying with the Department of Motor Vehicles. The agreement also allows the motor carriers and service providers to distribute registration credentials on behalf of the Motor Carrier Division of the Department. Motor carriers are required to attain a $25,000 surety bond while service providers must acquire a $50,000 surety bond in relation to the agreement.

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.

You must obtain a surety bond in order to become a licensed dealer in the State of Maryland. There are different types of dealer licenses and requirements for each.

The following is a list of the different types of Surety Bonds required by the Maryland Motor Vehicle Administration:

Surety Bond of Vehicle and Trailer Dealer
The bond amount requirements vary depending on the type of license and volume of business.

• New Vehicle Dealer
• Used Vehicle Dealer
• Wholesale Dealer
• Trailer Dealer
• New Motorcycle Dealer
• Used Motorcycle Dealer
• New Emergency Vehicle Dealer
• Used Emergency Vehicle Dealer

Surety Bond of Motor Vehicle Manufacturer
This bond is for the following types of licenses:

• Manufacturer
• Second State Manufacturer
• Distributor
• Factory Branch

Surety Bond of Title Service Agent
The bond amount is $25,000 and a separate bond is required for each licensed location.

If you are unsure which license you need to apply for, refer to the Motor Vehicle Administration’s Summary of Dealer Types. There you will find descriptions of the different license types and links to their licensing instructions.

Depending on the type of license, you may be able to download the application from the Motor Vehicle Administration’s website. If the application is not available online, you can request one by contacting the MVA Business Licensing and Consumer Services Unit either by phone (800) 950-1MVA or email businesslicensing@mdot.state.md.us.

When applying for your license, be sure to follow all the instructions detailed in your licensing package. There are several forms to be completed, as well as various documentation to obtain (permits, insurance, bond, etc.). All required documents must be submitted along with your application, including the surety bond.

This guide should serve as a good starting point. But remember to check with the Motor Vehicle Administration for the most up-to-date licensing & bond requirements.