Dealer Surety Bond
Surety Bond Legislation - Effective March 28, 2017
On September 29, 2016 legislation was signed into law which changed the dollar amount of the surety bond dealers (other than New Motor Vehicle Dealers) are required to maintain in order to become, or remain, registered under section 415 of the New York State Vehicle and Traffic Law. This law will become effective on March 28, 2017.
The new surety bond amounts required are as follows:
- $20,000 – Retail or Wholesale Motor Vehicle Dealer (other than new) that sold 50 or fewer vehicles in the previous calendar year
- $100,000 – Retail or Wholesale Motor Vehicle Dealer (other than new) that sold more than 50 vehicles in the previous calendar year
The dollar amount of the bond required to be maintained by dealers applying to become, or to remain, registered as a new motor vehicle dealer remains unchanged at $50,000.
Original dealer applicants cannot be approved on or after March 28, 2017 unless a bond has been submitted in compliance with the new law. Applications received prior to March 28th may require the submittal of an amended bond if the application is still in process on or after March 28th. Applicants are encouraged to secure the higher bond amount to minimize disruption in their approval process.
The law also requires that any existing dealer (other than New Motor Vehicle Dealers) shall be required to provide surety bonds that comply with these new requirements upon the renewal, replacement, alteration, or extension of such dealer’s current surety bond.
This information is being posted as a courtesy so you can begin to prepare for the March 28th effective date.
NYS Assembly Bill 8166A, Chapter 342 - Effective Date March 28, 2017