Used Motor Vehicle Dealer Auctioneer ($50,000) Bond - Statewide in Oklahoma

Brief Summary

Before you buy a $50,000 auction bond in Oklahoma, check whether you carry check and title insurance. Under 47 O.S. 583, an auction applicant that proves at least $50,000 of that coverage only needs a $25,000 bond. Either way, we write it on the Commission's own Auction Bond form.

Oklahoma requires each new applicant for a used motor vehicle dealer license to conduct a used motor vehicle auction to file a $50,000 bond with the Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission. The bond drops to $25,000 if the applicant proves check and title insurance of at least $50,000. Bonds and licenses expire December 31 and renewals are due by November 1.

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How to Apply for a Used Motor Vehicle Dealer Auctioneer ($50,000) Bond:

• Decide whether you will file the full $50,000 bond or prove $50,000 of check and title insurance and file a $25,000 bond.
• Have the business name exactly as it will appear on the Commission license application.
• Complete the bond application with owner and business details for underwriting.
• Receive the executed bond on the Commission's Auction Bond form.
• File the bond with the Commission along with the license application and the $600 license fee.
• Submit the renewal and a bond for the new year by November 1.

Detailed Information About the Oklahoma Used Motor Vehicle Dealer Auctioneer ($50,000) Bond:

Two possible bond amounts

Title 47, Section 583 of the Oklahoma Statutes sets the auction bond at $50,000 for each new applicant for a used motor vehicle dealer license for the purpose of conducting a used motor vehicle auction. The same section says an applicant who provides proof of check and title insurance in an amount not less than $50,000 is only required to have a $25,000 bond. Find out which one applies to you before the bond is written.

Section 581 defines a used motor vehicle auction as any business, other than salvage pools, that regularly engages in the sale or trade of used motor vehicles by auction.

Where the bond is filed

Section 581 names the licensing agency as the Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission. The Commission's Auction Bond form binds the principal and surety to the State of Oklahoma and severally to any person with a right of action under the bond.

What the bond guarantees

The bond must be approved as to form by the Attorney General and is conditioned that the licensee will not practice fraud, make fraudulent representations or violate 47 O.S. 581 et seq. The Commission form also requires the principal to indemnify and reimburse anyone who suffers loss through fraud, fraudulent representations or the issuance of a certificate of title. The surety may cancel on 30 days written notice to the principal and the Commission.

Term, renewal and fees

All bonds and licenses under the act expire on December 31 following issue and are not transferable. Renewal applications are due by November 1, and completed renewals received by then are issued by January 10. A used motor vehicle dealer license costs $600, renewals are $300 once you have been licensed in that classification, and each place of business beyond the principal location adds $200.

Eligibility and Requirements for a Oklahoma Used Motor Vehicle Dealer Auctioneer ($50,000) Bond:

• Bond of $50,000 under 47 O.S. 583, or $25,000 with proof of at least $50,000 in check and title insurance.
• Obligee: State of Oklahoma, filed with the Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission.
• Bond form approved as to form by the Attorney General.
• Bond and license expire December 31 and are nontransferable.
• A separate license for each place of business, with a $200 fee for each location beyond the principal one.
• Surety cancellation requires 30 days written notice to the principal and the Commission.

Oklahoma Used Motor Vehicle Dealer Auctioneer ($50,000) Bond FAQs:

Official and Additional Resources for the Oklahoma Used Motor Vehicle Dealer Auctioneer ($50,000) Bond: