MVED
Bonds
Bonds FAQ
General Information
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
Bonds FAQ
What does a dealer bond cover?
Bonds cover loss suffered because of fraud or fraudulent representations or due to:
- violating Utah Code Ann. §41-3-301(1) which requires a dealer to submit or deliver a certificate of title or manufacturer’s certificate of origin; or
- violating Utah Code Ann. §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?
A complainant 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 Utah Code Ann. §41-3-404.
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 Utah Code Ann. §41-3-205.