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Maryland bonds

Maryland — Motor Vehicle Or Trailer Dealer Bond

Maryland vehicle and trailer dealers select bond security by license class and sales volume. Have those details ready to choose the amount for your MVA application, then begin with Propeller.

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Recorded state
Maryland
Bond type
Motor Vehicle Dealer / Vehicle Sales Bond
Category
Vehicles, titles & transportation

What this bond does

Provides financial security for covered losses arising from the dealership's violations of Maryland vehicle laws and MVA regulations.

Who needs it
This bond is required for applicants seeking a Motor Vehicle or Trailer Dealer license in Maryland, including new vehicle, used vehicle, motorcycle, trailer, emergency vehicle, and wholesale dealers.
Who it protects
The bond protects the Administrator of Motor Vehicles and any member of the public harmed by the dealer's failure to adhere to Maryland vehicle laws. The total liability of the surety is limited to the specific bond amount determined by the volume of vehicles sold or projected for sale.

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 Amounts and Licensing

The required bond amount is tiered based on the type of dealership and the volume of vehicles sold or projected for sale annually. For example, used vehicle dealers with sales between 1-250 vehicles require a $15,000 bond, while new vehicle dealers selling over 2,500 vehicles require a $300,000 bond. Trailer dealers must provide bonds ranging from $5,000 to $15,000 depending on trailer size.

The bond must be submitted in the full name of the dealership, including any trade names, and must accurately reflect the names of all owners, partners, or officers listed on the MVA application. The bond remains in effect concurrently with the dealer's license and applies to any subsequent renewals.

Preparation and Submission

Before obtaining the bond, applicants should verify their specific sales volume and license category to ensure the correct bond amount is selected. The bond document must be completed, signed, and sealed by the surety company and the principal dealer, with all owners or officers correctly identified as required by the MVA.

Submit the original signed bond as part of your comprehensive Dealer's License Packet through the myMVA Business Portal. Ensure all other license requirements—such as zoning approval, criminal background checks, and proof of liability insurance—are fulfilled to avoid application rejection.

Compliance and Maintenance

Licensees must maintain valid records for three years following any transaction, or longer if required by federal statutes such as odometer documentation rules. These records must be available for inspection by the MVA or law enforcement during the dealer's approved business hours.

Dealer licenses and bonds are non-transferable. If a dealer relocates or changes ownership, they must apply for a corrected license. Failure to maintain compliance with these requirements or the terms of the surety bond may lead to administrative actions, including the potential revocation of the dealership license.

Sources

Have these ready

  1. Identify the license category and annual or projected sales volume used to determine the bond amount.
  2. Have the full legal dealership name, trade names and required owner, partner or officer details ready.
  3. After issuance, check the completed CS-067A bond and signatures, then submit it with the Dealer's License Packet through the myMVA Business Portal.

Questions about this bond

Is the bond amount the same for all dealers?

No. The required bond amount is based on the type of license and the number of vehicles sold or projected for sale. Amounts range from $5,000 for certain trailer dealers to $300,000 for high-volume new vehicle or emergency vehicle dealers.

Who must be listed as the principal on the bond?

The bond must be in the full name of the dealership, including any trade names. It must also list the full names of all officers, partners, or owners exactly as they appear on your MVA dealer license application.

Does the bond need to be renewed every year?

The bond runs concurrently with the period of your dealer license and remains in effect for any renewals. However, the penalty of the bond is not cumulative from year to year; the total liability of the surety cannot exceed the bond amount.

Can I obtain a license without a surety bond?

No. A surety bond is a mandatory document that must be submitted to the MVA prior to the issuance of your dealer’s license.

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