Motor Vehicle Dealer Bond - Definition

A Motor Vehicle Dealer Bond is a $25,000 surety bond, required in association with an application for the Motor Vehicle Dealer and Used Car Lot categories, which protects the obligee, against any financial losses as a result financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the principal. The bond must be valid for the 2-year license period. The bond may be issued by an authorized insurance/bonding company, or the applicant may post a cash bond with the DCRA per D.C. Municipal Regulation, Title 18, Chapter 5; Title 16, Chapter 3.

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