Surety Bond Encyclopedia

Motor Vehicle Verifier ($5,000) - Shepherd Bond - Statewide in California

Brief Summary

California's vehicle verifier permit is personal, and so is the $5,000 bond behind it. It is written in your name, not your dealership's, and it stays with you through every renewal. One continuous bond covers the permit for as long as you keep it active, for a small premium instead of $5,000 on deposit with the DMV.

California Vehicle Code Section 11301 requires every vehicle verifier to file a $5,000 corporate surety bond with the DMV application. The bond is filed on DMV form OL 26 in the applicant's own name, runs to the People of the State of California, and stays in force concurrently with each license period. Only peace officers, authorized DMV employees, National Insurance Crime Bureau agents and certain insurance fraud organization employees are exempt. Dealers and their employees are not.

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How to Apply for a Motor Vehicle Verifier ($5,000) - Shepherd Bond:

Confirm you are not exempt under Vehicle Code Section 675.6. Dealer staff are not exempt.
Use your own legal name exactly as it will appear on the OL 19 application.
Complete the bond application and review the quoted premium.
Pay the premium and receive the executed $5,000 bond on DMV form OL 26.
Complete Live Scan fingerprinting using form DMV 8016 and the OL 29I personal history questionnaire.
Submit the OL 19, OL 26 bond, OL 29I and Live Scan form to the DMV with the $51 application fee and $1 family support fee.
Keep the bond in force and renew the permit every two years.

Detailed Information About the California Motor Vehicle Verifier ($5,000) - Shepherd Bond:

The bond is in your name, not the business's

Under Vehicle Code Section 11300, no one may act as a vehicle verifier without first obtaining a vehicle verifier's permit. Section 11301 requires every applicant to file a bond approved as to form by the Attorney General, in the amount of $5,000, with a corporate surety licensed in California. The amount is flat and has not changed since the section was last amended in 1988.

The DMV's bond form, OL 26, requires the principal name to match the name on the application. The permit belongs to the individual verifier, so the bond does too. Plan on a bond for each person who will verify vehicles.

Who is exempt

Vehicle Code Section 675.6 removes four groups from the definition of vehicle verifier: peace officers, authorized DMV employees, agents of the National Insurance Crime Bureau, and employees of organizations certified under Insurance Code Section 12140 whose duties require or authorize vehicle verification. They may verify without the Section 11300 permit. Car dealers, their title clerks and auto service businesses are not on that list, so their verifiers need their own permit and bond.

What the bond covers

The OL 26 bond runs to the People of the State of California. It is conditioned on the verifier not causing loss to the State arising out of activity under the permit, and not causing loss to any person by incorrectly verifying an engine, vehicle identification number or hull identification number. The surety may cancel under Code of Civil Procedure Section 996.310 and following. Instead of a bond, an applicant may deposit $5,000 with the DMV using form OL 25E.

Term, renewal and fees

Permits renew every two years under Vehicle Code Section 11309. The OL 26 bond runs concurrently with the license period and each succeeding period, so a continuous bond carries through renewals. The DMV currently lists a $51 nonrefundable application fee plus $1 for the family support program, and a $15 renewal fee plus $1. Applicants also file the OL 19 permit application, the OL 29I personal history questionnaire, and Live Scan fingerprints using form DMV 8016.

Eligibility and Requirements for a California Motor Vehicle Verifier ($5,000) - Shepherd Bond:

Bond amount of exactly $5,000 under Vehicle Code Section 11301.
DMV form OL 26 Vehicle Verifier Surety Bond, with the People of the State of California as obligee.
Principal name on the bond matching the applicant's name on the application.
Corporate surety licensed to do business in California.
Live Scan fingerprints and personal history questionnaire.

California Motor Vehicle Verifier ($5,000) - Shepherd Bond FAQs:

I work at a dealership. Am I exempt from the permit and bond?

No. Section 675.6 exempts only peace officers, authorized DMV employees, National Insurance Crime Bureau agents and employees of certain certified insurance fraud organizations. Dealer employees need their own permit and bond.

Can the bond be in my company's name?

No. The OL 26 requires the principal name to match the name on the application, and the permit is issued to the individual verifier.

Do I need a new bond every renewal?

Not if you keep it active. The OL 26 bond runs concurrently with the license period and each succeeding license period, and permits renew every two years.

Can I deposit cash instead?

Yes. The DMV accepts a $5,000 deposit on form OL 25E in place of the surety bond. A surety bond keeps that $5,000 in your pocket.

What losses does the bond pay?

Losses to the State arising from your activity under the permit, and losses to any person caused by incorrectly verifying an engine, VIN or hull identification number.

What will the bond cost?

The surety sets the premium based on the $5,000 amount and your credit and history. The DMV does not set it. Apply to see your actual quote.