A new Missouri bill that was recently enacted will require a surety bond of certain licensed auto dealers in relation ti delayed delivery of certificates of ownership.
Details on the New Requirement
The new bill, titled MO H 1963 (see also MO S 780; MO H 2742) amends existing law to impose a $100,000 surety bond or irrevocable letter of credit requirement on certain licensed motor vehicle dealers with whom purchasers have a written agreement for the delayed delivery of their certificate of ownership by up to 30 days in lieu of the $50,000 bond otherwise imposed on licensed motor vehicle dealers.
Quoted from the legislation, “The proceeds of the bond or irrevocable letter of credit furnished by an applicant shall be paid at the order of the department and in the amount determined by the department to any buyer or interested lienholder up to the greater of the amount required for the release of the purchase money lien or the sales price paid by the buyer where a dealer has failed to fulfill the dealer’s obligations under an agreement to assign and deliver title to the buyer within thirty days under a contract.”
How to Apply for a Surety Bond
If you need to obtain this surety bond, you’ll need to contact a bond provider who is licensed to to business in Missouri. JW Surety Bonds is licensed nationwide, so please apply for a free quote online, or feel free to reach out to us if you’d like assistance with obtaining this bond.