New Surety Bond Posting Required

• By: TIADA Compliance
• On: 08/31/2021 09:17:35
• In: Texas Posts
• Comments: 0

Texas DMV on Surety Bond Increase Requirements

TxDMX reports that “Applicants and dealers applying for a new GDN, or renewing a current GDN, prior to September 1, may still submit a Motor Vehicle Dealer Surety Bond in the amount of $25,000 to meet the security requirement. All applicants and dealers applying for a new GDN, or renewing a current GDN, on or after September 1 are required to submit a Motor Vehicle Dealer Surety Bond in the amount of $50,000.”
 
The new law comes with other specific requirements. Dealers must post notice of the surety bond and the procedure by which a claimant can recover from the bond. This posting should be adjacent to, and in the same manner as, the dealer's posted GDN. TxDMV has provided the posting and it is available here. All independent automobile dealers are required to post the new notice.
 
“The bond rate per thousand has not changed,” says Ann Mullen of Mullen Insurance. However, the required bond amount has been doubled from $25,000 to $50,000.  The result is whatever you paid for your last bond, expect it to double this time around.” 

Contact TIADA for More Updates and Information

Your best source of up-to-the-minute information on legislative issues that will affect your industry is the Legislative Action Center, found under Advocacy at the TIADA website, www.txiada.org. As always, we welcome the input of our members regarding legislative matters. TIADA's legislative team will work diligently to keep you abreast of the issues and call on you to act when needed.