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Arizona bonds

Arizona — Wholesale Motor Vehicle Dealer Bond

Arizona wholesale motor vehicle dealers use the ADOT bond for covered title-delivery and title or registration fee losses. Keep the wholesale business as the applicant when you continue to Propeller.

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Recorded state
Arizona
Category
Vehicles, titles & transportation

What this bond does

A surety bond to provide compensation to persons suffering financial loss due to non-payment of required fees or failure to deliver a clear title.

Who needs it
The Arizona wholesale motor vehicle dealer named on the application.
Who it protects
The bond protects persons from financial loss due to the dealer's non-payment of title/registration fees or failure to deliver a valid title free of prior owner interests and liens.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Bond Liability

The bond covers damages resulting from non-payment of title or registration fees and failures to deliver a valid, lien-free title.

Cancellation Notice

The surety must provide 60 days' notice to the ADOT before canceling the bond.

Requirement

The bond requires a wet signature from the principal and surety to be valid.

Sources

Have these ready

  1. Have the wholesaler's legal business name, DBA and ADOT license details ready.
  2. Confirm the amount assigned to the wholesale class before completing the provider application.
  3. After issuance, arrange the principal and surety wet signatures required by the form and submit the completed bond to ADOT.

Questions about this bond

Does this bond cover damages from title issues?

Yes, it provides coverage if the dealer fails to deliver a valid vehicle title certificate free and clear of prior owners' interests and liens.

Is the surety bond amount limited?

Yes, the limit of liability for the Surety is restricted to the penal sum set forth in the bond.

How is a bond cancellation handled?

The surety may terminate liability by giving 60 days' written notice to the Director of ADOT.

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