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
What does a dealer bond cover?
Bonds cover loss suffered because of fraud or fraudulent representations or due to:
- violating §41-3-301(1) which requires a dealer to submit or deliver a certificate of title or manufacturer’s certificate of origin; or
- violating §41-3-402(1) which requires payoff of liens on motor vehicles traded in.
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 failed to obtain a new bond before my old one expired. 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).