CALIFORNIA DEPARTMENT OF MOTOR VEHICLE Dealer Bond

OLBIGEE: California Department of Motor Vehicles

BOND AMOUNT: $10,000.00 Wholesale (selling less than 24 cars per year)

$50,000.00 Retail (selling more than 24 cars per year)

BENEFICIARY OF BOND: The people of the State of California , implemented to forego the principal's obligation to avoid fraudulent activity, which could cause a monetary loss for a seller, purchaser, financial agency, or governmental agency.

WHY BOND IS REQUIRED: Expands the authority of the DMV to order restitution to victims who have suffered financial loss or damage by a vehicle dealer, manufacturer, distributor and transporter when the occupational license has been suspended or revoked. Expands DMV's authority to refuse to issue a license until restitution has been paid.

WHO IS REQUIRED TO SECURE THIS BOND: While there are certain exceptions (defined in CVC Section 286 ) , in general, a "vehicle dealer" is typically a person who, on a full or part-time basis, buys, sells, trades, or arranges the purchase, sale or trade of vehicles, expecting some compensation or benefit. CVC, Section 285 Salespersons employed by licensed dealers, and persons who sell cars which they bought and used as their personal vehicles, are not dealers.

BOND CIVIL CODE: CVC Section 11700 et seq.

Click Here to Download DMV Dealer Bond Application.