The auto dealer bond requirements change from state to state. They also go through requirement changes as legislation decides to redesign how auto dealerships are licensed. That is why it continues to be very important to stay on top of the changes in the DMV dealership surety bond requirements for your state. To help you keep up to date on any changes, here are the requirements for surety bonds when it comes to having a license for an auto dealership in New Mexico, Colorado, Wyoming and Montana.
New Mexico Auto Dealer Bond Requirements
The folks at the DMV in New Mexico must like to keep things under close control. They require that an auto dealership renews their license every year on December 31st and that they provide proof of bonding at the time of renewal. This is a good date to keep in mind whether you have a regular car and truck dealership or even if you only sell motorcycles. Both types of dealerships are required to be licensed and have surety bond coverage.
For new and used motor vehicle dealers – $50,000 surety bond
For dismantlers – $50,000 surety bond
For motorcycle dealerships – $12,500 surety bond
Colorado Auto Dealer Bond Requirements
Colorado has some specific requirements for how the surety bond is set up, but they only require surety bonds for licenses for new and used motor vehicle dealerships. The $50,000 auto dealer surety bond must be in the legal name of the dealership, the bond must be an original dealer bond signed by the owner or corporate partner of the company or a corporate officer if the company is an LLC.
Wyoming Auto Dealer Bond Requirements
If you have ever driven through Wyoming, you probably remember it for its wide open spaces and giant sky. It is also a state with few roads and even fewer cars and trucks. That may be why the state of Wyoming has one surety bond requirement that covers all auto and truck dealers, whether they are selling new or used vehicles. The surety bond requirement is $25,000 and does not need to be renewed annually.
Montana Auto Dealer Bond Requirements
While Montana may be called The Treasure State, to many of us it is cowboy country and proud of it. The auto dealer bonds for licensing an auto dealership in Montana cover new and used as well as both cars and trucks. Licensing requires a $25,000 surety bond and must cover the period from January 1st to December 31st each year.
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Deferred Deposit Lenders and License Bond RequirementsIn Montana, if you run a deferred deposit business, commonly referred to as “payday loans” since most people who use them are borrowing against their next paycheck, you now need a license bond. In fact, you will now need a $10,000 license bond for each location, a smart move since these seem to pop up in multiple locations in many cities. Although in the past the license bonds were required to cover damages to clients for actions taken by the businesses, this new law will also cover civil penalties and restitution ordered by the court.
Mortgage Servicers Will Need Surety BondsA new law has been passed that will required mortgage servicers in Connecticut to now post a $10,000 license bond that will cover the business and all of its branch offices. The license bond will be to cover all actions and funds received by the mortgage service office and to ensure that the office performs in accordance to the laws of Connecticut. Direct action on the bond will be permitted and the bond’s liability cannot be more than its penal sum. Ohio is also looking at enacting requirement for a license bond for mortgage servers. However Ohio is considering a requirement of a $250,000 license bond for the first location and a $10,000 bond for each separate location.
Offering License Bonds at Reasonable RatesIf your business is required to have a license bond, do you have a reliable service that can offer you one at a reasonable rate? BuySurety has been in the business of offering surety bonds at reasonable rates since 1998. We can work with your company to help you get bonded for exactly the kind of surety bond you need or are required to carry, and for a great rate. Even if your credit rating is poor, we can help. So why not contact BuySurety today and find out just how easy it is to qualify and receive the right surety bond at the best possible price, no matter what your credit rating or how long you have been in business.
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