Individuals applying for a motor vehicle wholesaler license in Alabama are required by the Alabama Department of Revenue (ADR) to submit and maintain a surety bond in the amount of $25,000. By posting this bond, the principal (vehicle dealer) agrees to comply with sections 40-12-390 through 40-12-400 of the Code of Alabama 1975. It also provides protection to consumers from financial loss if the principal engages in unethical or unlawful business practices. If any person suffers a loss due to fraud, fraudulent representation or violation of these statutes, a claim can be filed against the bond. If the claim is validated, the surety will pay damages up to the penal sum of the bond to resolve the claim. The principal is then responsible to reimburse the surety of any monies paid out, including all attorney fees incurred.
Alabama Motor Vehicle Wholesaler Surety Bonds have a continuous term and remain in effect until canceled. The surety can cancel the bond at anytime by providing written notice to the ADR 60 days prior to the effective cancelation date.
Pacific Surety is proud to offer a variety of approvals, regardless of credit, with rates as low at $250 annually and discounted two-year pricing at $438 for qualifying applicants. This process typically takes just a few hours for a quote, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
Surety Bond Name
Motor Vehicle Wholesaler Surety Bonds – Alabama
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