Surety Bond Encyclopedia

Motor Vehicle Full / Issuing Agent ($30,000) Bond - Statewide in Pennsylvania

Brief Summary

A Pennsylvania full agent posts $30,000 for every approved business location, not $30,000 for the company. The bond secures your Agent Services Agreement with PennDOT, and PennDOT will not enter into the agreement until the bond is in place.

Full agents that complete title and registration applications and issue temporary registration plates for PennDOT must post a bond under 75 Pa.C.S. 7503.1 and 67 Pa. Code 43.9. The amount is whatever the Agent Services Agreement sets, and the agreement PennDOT publishes in PUB 459, along with the instructions on Form MV-375, sets it at $30,000 for each approved business location.

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How to Apply for a Motor Vehicle Full / Issuing Agent ($30,000) Bond:

Count each business location you want approved, at $30,000 of bond for each.
Have the surety execute Form MV-375 with the Full/Issuing Agent box checked.
Submit interior and exterior business photographs, a bank reference letter and three business reference letters.
Provide State Police criminal history records for each owner or officer.
Provide a notarized statement of any outstanding liabilities to the Commonwealth.
Sign PennDOT's Agent Services Agreement and pay the $60 Motor Vehicle Transaction Recovery Fund assessment.

Detailed Information About the Pennsylvania Motor Vehicle Full / Issuing Agent ($30,000) Bond:

The amount is per location

67 Pa. Code 43.9(b) says issuing agents, other than card agents, are bonded in the amount set in the Agent Services Agreement. The agreement PennDOT reproduces in PUB 459 (3-25) requires a bond of $30,000 for each of the provider's approved business locations, and the instructions on Form MV-375 (3-25) list the full agent amount as $30,000 for each place of business. A full agent with three offices carries $90,000 in bonding.

Why the bond comes first

75 Pa.C.S. 7501 says no person shall operate a messenger or agent service without a valid contract with PennDOT, and doing so is a summary offense with a $500 fine. Section 7503.1 says PennDOT must require the bond before it enters into that contract. 67 Pa. Code 43.4 then lists the bond among the items an applicant submits to be authorized to issue temporary registration plates, along with business photographs, a bank reference letter, three business references and State Police criminal history records for each owner or officer.

What the bond covers

Under 43.9 the bond is for the use and benefit of the Commonwealth and any person who sustains a monetary loss, including dishonored checks and unpaid fees or taxes. A monetary penalty not paid within 45 days of assessment also counts as a loss. If the bond is reduced or a judgment on it is outstanding, temporary registration privileges are suspended until the original amount is restored.

Agreement terms that come with it

The Agent Services Agreement in PUB 459 runs for an initial five years and then renews automatically for five additional one year periods unless either side gives 30 days written notice. The provider pays a $60 assessment to the Motor Vehicle Transaction Recovery Fund and must be, or employ, a notary public present during all hours of operation, unless it is a dealer licensed by the State Board of Vehicle Manufacturers, Dealers and Salespersons.

Eligibility and Requirements for a Pennsylvania Motor Vehicle Full / Issuing Agent ($30,000) Bond:

A surety company authorized to transact business in Pennsylvania.
Bond for the use and benefit of the Commonwealth of Pennsylvania and persons who sustain a monetary loss.
A notary public on site during all hours of operation, unless the agent is a licensed vehicle dealer.
An established place of business, with records kept for 3 years.
A valid Agent Services Agreement with PennDOT under 75 Pa.C.S. 7501.

Pennsylvania Motor Vehicle Full / Issuing Agent ($30,000) Bond FAQs:

Is $30,000 the total, or per office?

Per office. The Agent Services Agreement in PUB 459 requires $30,000 for each approved business location, and Form MV-375 lists $30,000 for each place of business.

Where does the $30,000 figure come from?

75 Pa.C.S. 7503.1 lets PennDOT set the amount, and 67 Pa. Code 43.9(b) ties it to the Agent Services Agreement. Because the figure lives in the agreement rather than the statute, confirm it in the agreement you sign before the bond is issued.

Is a card agent the same thing?

No. A card agent is a notary public approved to issue temporary registration cards when a plate is transferred, and PennDOT's Card Agent Packet sets that bond at $3,000 for each approved card agent service. This page covers the full agent bond.

What happens if a claim is paid?

The surety pays valid claims up to the bond amount and then seeks repayment from the agent. If the bond drops below its original amount or a judgment on it is outstanding, 67 Pa. Code 43.9 suspends temporary registration privileges until the bond is restored.

How long does the agreement last?

The agreement in PUB 459 has an initial term of five years and then renews automatically for five additional one year periods, unless either party gives 30 days written notice that it will not renew.