Vehicle Registration Service ($25,000) Bond - Statewide in California

Brief Summary

Every California registration service posts the same $25,000 bond on DMV form OL 605, so there is no tier to figure out. What catches owners is what happens afterward. If the bond amount drops or a final judgment against the service goes unpaid, the license is suspended automatically, and the bond has to stay in force for three years after the business closes. Getting it written correctly the first time keeps the application moving through the DMV inspector.

California Vehicle Code 11402 sets the registration service bond at a flat $25,000 for both the original license and every renewal. The bond runs to the People of the State of California, is written on DMV form OL 605 by an admitted surety insurer, and covers loss to the public or the state arising out of the operation of the registration service.

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How to Apply for a Vehicle Registration Service ($25,000) Bond:

• Confirm the business is a registration service under Vehicle Code 11400 and not one of the handbook exemptions.
• Have the true, full legal name of the licensee exactly as it will appear on the OL 601 application, including any DBA.
• Provide owner or officer names, home addresses and Social Security numbers for the credit review.
• Complete the bond application and review the quoted annual premium.
• Receive the executed $25,000 bond on DMV form OL 605, signed by the surety's authorized representative.
• Submit the original OL 605 with the OL 599 checklist package to a local DMV Occupational Licensing Inspections Office.

Detailed Information About the California Vehicle Registration Service ($25,000) Bond:

Who has to post this bond

Vehicle Code 11400 makes it unlawful to act as a registration service without a DMV license. That covers anyone who, for compensation, solicits or receives applications for vehicle registration, renewal, transfer of registration or ownership, or motor carrier permits, or who takes those documents to the DMV. Vehicle Code 11401(e) requires the license application to include a bond from an admitted surety insurer, approved as to form by the Attorney General.

The DMV Registration Service Program Handbook lists who is not a registration service: employees of dealers or dismantlers doing the work for their employer, motor clubs, common carriers transmitting applications in their regular business, and people handling only their own vehicles.

The amount and how it can be lost

Vehicle Code 11402 fixes the bond at $25,000 for the original license and for renewal, and liability must stay at that amount. If liability under the bond is reduced, or a final court judgment for a Vehicle Code violation is outstanding against the service, the license is automatically suspended. Reinstatement requires filing an additional bond, restoring the bond to its original amount, or satisfying the judgment. The bond must also remain in effect for three years after the registration service stops doing business.

Filing with the DMV

The executed OL 605 goes into the application package listed on checklist OL 599, along with the OL 601 application, the OL 29B personal history questionnaire, property use verification OL 139, the ADM 9050 agent for service of process form, and Live Scan fingerprints. The package is submitted to a local Occupational Licensing Inspections Office, where an inspector reviews it, runs the background check and inspects the place of business. Under Vehicle Code 11409 the original license fee is $150, nonrefundable, and the renewal fee is $15. The DMV handbook notes that cash, a passbook account or a certificate of deposit may be accepted in place of the bond form.

How premium is set

The surety quotes an annual premium based on the $25,000 penal sum and an underwriting review of the owners, including personal credit. The full $25,000 stays in force the whole time, and the premium is the only amount paid to obtain it.

Eligibility and Requirements for a California Vehicle Registration Service ($25,000) Bond:

• Bond amount of exactly $25,000, the same for original licensing and renewal.
• An admitted surety insurer, on the OL 605 form approved as to form by the Attorney General.
• The People of the State of California named as obligee.
• Bond issued in the true, full name of the occupational licensee as shown on the application, or the DMV will not accept it.
• Bond kept at the full $25,000 at all times and in effect for three years after the business closes.

California Vehicle Registration Service ($25,000) Bond FAQs:

Official and Additional Resources for the California Vehicle Registration Service ($25,000) Bond: