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Hawaii bonds

Hawaii — Motor Vehicle Dealer Bond

If Hawaii's Motor Vehicle Industry Licensing Board accepts a bond in place of the required inventory or flooring line of credit, apply using the amount assigned to your dealer class and sales volume.

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Recorded state
Hawaii
Category
Vehicles, titles & transportation

What this bond does

Surety bond to serve as financial security when a required inventory or flooring line of credit cannot be obtained.

Who needs it
Motor Vehicle Dealer/Auction
Who it protects
The form identifies the protected interest through the Board's acceptance of the bond in lieu of a line of credit to ensure financial responsibility.

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 Substitution

Dealers may provide a surety bond if they are unable to obtain the required inventory or flooring line of credit.

Bond Amounts

The required bond amount varies based on the dealer type and sales volume, such as $25,000 for used vehicle dealers selling less than 60 units per month.

Submission Requirements

The original, notarized bond form must be submitted to the Board for license application purposes.

Sources

Have these ready

  1. Identify your dealer class and sales volume, and discuss the line-of-credit alternative with the Board before choosing the sum.
  2. Have the legal applicant name, requesting party and any required form available for the provider application.
  3. Compare the requested sum and effective dates with the actual option and issued document.

Questions about this bond

Can I use a bond instead of a line of credit?

The Board may accept a surety bond when the required inventory or flooring line of credit cannot reasonably be obtained.

How do I choose the amount?

Use the Board's direction for your dealer class and sales volume. The cited instructions include $25,000 for used dealers selling fewer than 60 vehicles per month.

How do I start the bond application?

Purchase Now opens Propeller in a new tab through The Southern Agency. After issuance, submit the original notarized bond to the Board as instructed.

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