Florida MVD bonds expire April 30 of ever year.
What is A Florida MVD Bond?
A MVD is a surety bond. Surety bonds are required to fulfill a licensing requirement or financial obligation. Bonds protect the obligee, from fraud, breach of contract and in some cases certain payments. Check your state Statutes referenced in your Surety Bond form to see what applies to you.
Who is requiring the Bond?
Florida MVD Bonds are required by The State of Florida department of Highway Safety and Motor Vehicles. This is the Obligee. A Obligee is the one that is requiring the bond. The Principal is the person or the business applying for the surety bond.
What does it do?
Taken from the Florida bond form
“WHEREAS, such bond shall be in favor of any person in a retail or wholesale transaction who shall suffer any loss as a result of any violation of the conditions herein above contained. NOW, THEREFORE, if the above named principal shall fully comply with the conditions of any written contract made by him as such dealer in connection with the sale or exchange of any motor vehicles, and shall pay or cause to be paid to any person in a retail or wholesale transaction any loss or damages which such person shall sustain as a result of any failure to comply with the conditions of any written contract made by such dealer in connection with the sale or exchange of any motor vehicle or as a result of any violation of the provisions of Chapter 319 or 320, Florida Statutes, in the conduct of the business of which he is licensed, then this obligation shall be void, otherwise to remain in full force and effect.
Basically if you violate the law the damaged party can file a claim and recoup their loses.
What happens if you have a claim?
If you have a claim and the surety pays out you must pay back the surety for the lose.
Surety bonds are underwritten similar to a loan. The surety reviews your credit and financials to determine surety credit.
How much do Surety Bonds cost?
Surety bonds for these bonds can start at 1% for good credit and qualifying assets. For clients that have issues rates can be anywhere from 3% to 20%.
