Oklahoma Motor Vehicle Dealer Bonds
Oklahoma Motor Vehicle Dealer Bond Information
Used motor vehicle dealers and wholesale motor vehicle dealers in Oklahoma must post a type of surety bond called a Dealer Bond in favor of the Oklahoma Used Motor Vehicle and Parts Commission. The Dealer Bond secures ethical business conduct of the licensed auto dealer and the bond is typically required in a coverage amount of $25,000 but Used Motor Vehicle Dealer Auctions are required to furnish a $50,000 surety bond.
How Much Does a Motor Vehicle Dealer Bond Cost in Oklahoma?
What Does a Motor Vehicle Dealer Bond Protect Against?
The corporate surety bond ensures lawful business practices and compliance with rules and regulations set out by the Commission. In a situation where the bonded customer (principal) fails to comply with surety bonding terms and requirements, the surety company is financially obligated to cover damages up to the bond amount or penal sum of the bond. The bonded principal must conduct its business as a used motor vehicle dealer without engaging in fraud or fraudulent representations, and maintain compliance with the provisions of the Oklahoma Used Motor Vehicle Dealer Laws (47 0.S. ' 581 et seq.).
All Oklahoma motor vehicle dealer licenses and surety bonds expire on December 31st. The bond may be canceled by the surety company at any time by providing 30 days advance written notice to the principal and the Used Motor Vehicle and Parts Commission.