Bonds

Dealers, Body Shops and Crushers must file a corporate surety bond with the Utah MVED that must remain in effect as long as the dealer or crusher is in business.

• New or used motor vehicle dealers $75,000
• Motorcycle or small trailer dealers $10,000
• Body Shop $20,000
• Crushers $10,000

Frequently Asked Questions

What does a dealer bond cover?

Bonds cover loss suffered because of fraud or fraudulent representations or because of the violation of:

• any of the provisions of the Motor Vehicle Act or Motor Vehicle Business Regulation Act (41-1a and 41-3 UCA),
• any law respecting commerce in motor vehicles , or
• any rule or regulation respecting commerce in motor vehicles promulgated by a licensing or regulating authority (41-3-404 UCA).

How should someone with a complaint make a claim on a bond?

He/she should contact an attorney, who will know what legal procedures to follow. A complaint must be filed with MVED within one year after the cause of the complaint occurs, and any court action must commence within two years after that (41-3-404 UCA).

I am a dealer and my bond is being canceled next week. I forgot to get a new one, and now I won't be able to have a new bond on file before the old one lapses. Can I post a cash bond or keep operating until the new bond is on file?

No. It is illegal to operate as a dealer without a current corporate surety dealer bond on file with MVED (41-3-205 UCA).