Surety Bond Encyclopedia

Motor Vehicle Manufacturer / Dealer ($20,000) Bond - Statewide in Pennsylvania

Brief Summary

Under 75 Pa.C.S. 1335, PennDOT will not issue dealer registration plates until a $20,000 bond is posted. Form MV-375 asks for that bond for each place of business, so a dealer with two lots is looking at two bonds, not one. Get the count right and the bond is filed with your MV-349 plate application without a second trip.

Pennsylvania dealers and manufacturers licensed by the State Board of Vehicle Manufacturers, Dealers and Salespersons post a $20,000 bond with PennDOT before receiving dealer registration plates under 75 Pa.C.S. 1335(a). PennDOT Form MV-375 calls for $20,000 for each place of business. Farm equipment dealers, mobile home dealers and manufacturers, and modular housing manufacturers are exempt.

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How to Apply for a Motor Vehicle Manufacturer / Dealer ($20,000) Bond:

Hold a vehicle dealership lot license from the Department of State.
Complete PennDOT Form MV-349, Application for Vehicle Dealer Registration Plates for Dealers Licensed by Department of State.
Have the surety execute an original Form MV-375 for $20,000 for each place of business.
Obtain a State Police criminal history record on Form SP 4-164 for each owner, partner or corporate officer.
Provide a certificate of insurance or insurer letter showing liability coverage for as many vehicles as the number of plates applied for.
Send the package to PennDOT's Bureau of Motor Vehicles, Regulated Client Services, in Harrisburg.

Detailed Information About the Pennsylvania Motor Vehicle Manufacturer / Dealer ($20,000) Bond:

Two agencies, one bond

The dealer license comes from the State Board of Vehicle Manufacturers, Dealers and Salespersons in the Department of State. The bond is filed with PennDOT. 75 Pa.C.S. 1335(a) says that upon posting of a bond in the amount of $20,000 and approval of an application, PennDOT issues special registration plates to dealers and manufacturers licensed by the State Board, plates that may be displayed on vehicles in lieu of registering each vehicle individually. PennDOT's PUB 459 (3-25), Requirements on Becoming a Dealer, lists the bond on Form MV-375 alongside the Form MV-349 plate application, the Department of State dealership lot license and a State Police criminal history record on Form SP 4-164 for each owner, partner or corporate officer.

Count your locations

PUB 459 tells dealers to complete Form MV-375 for each place of business, and the form's instructions list the manufacturer and dealer amount as $20,000 for each place of business. A dealer opening a second lot should expect a second $20,000 bond.

Who does not post it

Section 1335(a.2) exempts farm equipment dealers, mobile home dealers and manufacturers, and modular housing manufacturers. Under section 1335(a.1), a dealer or manufacturer that already has a bond on file with the Commonwealth, in the Commonwealth's name and in an amount and coverage at least equal to this one, does not have to file a separate bond.

Issuing temporary plates is a separate step

A dealer that also wants to issue temporary registration plates must be authorized under 67 Pa. Code Chapter 43. Section 43.9 requires every authorized dealer to keep a bond on file with the Bureau of Motor Vehicles, and issuing agents other than card agents are bonded in the amount set by the Agent Services Agreement. The agreement reproduced in PUB 459 sets that bond at $30,000 for each approved business location. Ask the Bureau of Motor Vehicles how the two requirements apply to your dealership before the bonds are written.

Eligibility and Requirements for a Pennsylvania Motor Vehicle Manufacturer / Dealer ($20,000) Bond:

Bond amount of $20,000 under 75 Pa.C.S. 1335(a).
Obligees: the Commonwealth of Pennsylvania and any person who transacts with the dealer in its authorized capacity.
A surety company authorized to do business in Pennsylvania.
Original MV-375 form, with the surety's power of attorney attached when an attorney in fact signs.
A continuous bond, with at least 60 days notice to the Bureau of Motor Vehicles before cancellation or nonrenewal.

Pennsylvania Motor Vehicle Manufacturer / Dealer ($20,000) Bond FAQs:

I have two lots. Is one bond enough?

PennDOT asks for Form MV-375 for each place of business, and the form lists $20,000 for each place of business. Plan on one $20,000 bond per lot.

Who is exempt?

75 Pa.C.S. 1335(a.2) exempts farm equipment dealers, mobile home dealers and manufacturers, and modular housing manufacturers. Any other licensed dealer or manufacturer that wants dealer plates posts the bond, unless it already has an equal or larger Commonwealth bond on file under section 1335(a.1).

Does the State Board collect this bond?

No. The State Board of Vehicle Manufacturers, Dealers and Salespersons issues the dealer license. The bond is filed with PennDOT's Bureau of Motor Vehicles as part of the dealer registration plate application.

Does this bond let me issue temporary tags?

Not on its own. Issuing temporary registration plates takes separate authorization under 67 Pa. Code Chapter 43, and section 43.9 bonds issuing agents in the amount set by the Agent Services Agreement. The agreement in PennDOT's PUB 459 calls for $30,000 for each approved business location.

What does the bond guarantee?

Form MV-375 conditions the bond on the dealer following the laws and regulations that govern the business and not causing the Commonwealth a monetary loss, limited to fees, sales tax and monetary penalties.