Michigan — Non-Depository Sales Finance Company- Main Office Bond
Michigan's non-depository sales finance main-office bond applies to the business financing motor vehicle installment sales. The ordinary main-office amount is $20,000, with a statutory $5,000 amount for applicants holding certain other Michigan lending licenses.
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- Recorded state
- Michigan
- Bond type
- Consumer Finance / Lender Bond
- Category
- Financial services
What this bond does
Meet the Motor Vehicle Sales Finance Act's security requirement for the company's principal place of business, using the appropriate non-depository bond in FIS 2311.
- Who needs it
- Non-depository sales finance companies applying for or renewing a Michigan main-office license under Act 27 of 1950, Extra Session.
- Who it protects
- The bond runs to Michigan for the State and people with claims under the Act. It secures compliance with the Act and lawful rules, and money owed under those provisions. The statute's private bond action requires a judgment against the licensee that remains unsatisfied thirty days after becoming final.
Your bond option
This is the option on record for this bond.
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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.
Sources
- Michigan DIFS: Motor Vehicle Installment Seller / Sales Finance Co (opens in a new tab)Checked October 27, 2026
- Michigan DIFS: FIS 2311 Sales Finance License Application (opens in a new tab)Checked October 27, 2026
- Michigan Legislature: Section 492.105 (opens in a new tab)Checked October 27, 2026
- Michigan DIFS: Motor Vehicle Sales Finance Act Renewal FAQ (opens in a new tab)Checked October 27, 2026
Have these ready
- Identify the principal office and exact sales finance applicant, including any approved DBA.
- Disclose Michigan licenses that may qualify for the statutory $5,000 amount.
- Use the non-depository surety instrument in the current DIFS-selected FIS 2311.
- Confirm the term, original bond or continuation delivery and separate annual renewal requirements.
Questions about this bond
Is this the $10,000 branch bond?
No. This listing is for the main office. The statute ordinarily requires $20,000 for the principal place and $10,000 for each additional location, with the specified $5,000 exception for qualifying other-license holders.
Is every finance company eligible for the $5,000 bond?
No. Section 492.105(b) identifies particular Michigan lending licenses. Provide the actual license details rather than assume all finance companies qualify.
Does this bond cover every unpaid customer complaint?
It secures the Act's duties and money owed. The statutory private action on the bond requires a final judgment against the licensee that remains unsatisfied for thirty days.
Does buying a continuation finish license renewal?
No. File the accepted original continuation or new bond and complete the separate DIFS renewal requirements. Confirm the statutory advance filing deadline for the bond evidence.