Automotive Dismantler and Parts Recycler ($50,000) Bond - Statewide in Alabama

Brief Summary

Alabama will not issue or renew an automotive dismantler and parts recycler license without a $50,000 continuing surety bond payable to the Alabama Department of Revenue. The department generates the bond form inside the MyDMV application, so the only thing you supply is a surety willing to sign it. A premium each year keeps $50,000 of your own money out of the state's hands and keeps the license alive.

Alabama requires a $50,000 surety bond from every applicant for an automotive dismantler and parts recycler license, under Code of Alabama 40-12-414 and Alabama Administrative Code 810-5-12-.02. The bond is payable to the Alabama Department of Revenue, is continuous rather than annual, and must be on the department's original form with a matching power of attorney. The license year runs October 1 through September 30, the fee is $225, and renewals after October 31 carry a 15 percent penalty.

We can help with all Alabama bonds!

How to Apply for a Automotive Dismantler and Parts Recycler ($50,000) Bond:

• Obtain your NMVTIS registration number before you start the license application.
• Legal business name and address exactly as entered in the MyDMV application.
• Owner or officer name, home address and Social Security number for the surety's credit review.
• Complete the online application in MyDMV and print the bond form it generates.
• Complete the bond application, review the premium, and have the surety execute the department's original form with a power of attorney bearing the same issue date.
• Submit the signed bond, power of attorney and transmittal document to the Alabama Department of Revenue with the $225 fee paid online.
• Renew the license by October 31 each year and never let the bond cancel without a replacement already on file.

Detailed Information About the Alabama Automotive Dismantler and Parts Recycler ($50,000) Bond:

You may be a dismantler without knowing it

Code of Alabama 40-12-410, as the Alabama Department of Revenue explains it, presumes that a person, firm or corporation is engaged in the business of an automotive dismantler and parts recycler if it possesses 10 or more inoperable motor vehicles for more than 30 days. A body shop holding cars that are waiting on repairs is not covered, and neither is a junk dealer recycling scrap metal. Everyone else over that line needs the license and the bond.

The bond is $50,000, continuous, and payable to the Department of Revenue

Alabama Administrative Code 810-5-12-.02 sets one $50,000 figure for motor vehicle dealers, automotive dismantlers and parts recyclers, wholesale auctions, designated agents and title service providers. It cites Code of Alabama 40-12-414 as the authority for the dismantler bond. The bond is payable to the Alabama Department of Revenue and it is a continuing bond, so it does not need to be rewritten every license year as long as the surety keeps it in force.

The rule is strict about the paperwork. The department wants the original bond form, unaltered, signed by the applicant, with the surety's power of attorney carrying the same issue date as the bond and the surety's contact information on the form. The department's application in MyDMV generates the bond form once you finish the online application, and you print it for the surety to execute.

What happens if the bond lapses

Under 810-5-12-.02, if the department receives a cancellation notice from the surety and a replacement bond is not on file before the cancellation date, the license is revoked immediately. There is no grace period. Treat a premium invoice from your surety as a license deadline.

License year, fee and renewal

The license runs October 1 through September 30 and must be renewed by October 31 each year. The fee is $225, paid online by credit card. After October 31 the department adds a 15 percent penalty and interest. Licensing requirements are in Code of Alabama 40-12-415.

NMVTIS comes first

An applicant must already hold a National Motor Vehicle Title Information System registration number before applying. The department calls it mandatory. Getting the NMVTIS number does not shrink or replace the bond.

How to apply

Applications are filed electronically through MyDMV. A business that already holds a dealer regulatory license uses its existing login. A new applicant registers through the in state registration option, completes every field, prints the required documents including the bond, and submits them to the department. Processing takes roughly two to four business days once the packet is complete.

Eligibility and Requirements for a Alabama Automotive Dismantler and Parts Recycler ($50,000) Bond:

• Bond amount of exactly $50,000 under Code of Alabama 40-12-414 and Alabama Administrative Code 810-5-12-.02.
• Alabama Department of Revenue named as obligee.
• Continuing bond that stays in force until the surety cancels it on notice.
• Department's original bond form, unaltered and signed by the applicant, with the surety's contact information.
• Surety power of attorney with an issue date matching the bond.
• Credit review of the owners. At $50,000 the rate depends more on credit than on business size.

Alabama Automotive Dismantler and Parts Recycler ($50,000) Bond FAQs:

Official and Additional Resources for the Alabama Automotive Dismantler and Parts Recycler ($50,000) Bond: