Who needs an Ohio Motor Vehicle Title Defect Bond?
Used motor vehicle dealers in the State of Ohio are required in section 4501:1-3-11 of the Ohio Administrative Code to post a surety bond of $25,000. The bond’s sole purpose is to replenish funds that have been distributed from the Title Defect Rescission Fund in order to compensate retail purchasers from the bonded dealership.
Who is exempt from the bond requirement?
If you are a new motor vehicle dealer who also holds a used motor vehicle dealers license or a used motor vehicle dealer that held a license prior to the effective date of the relevant Ohio Administrative Code section, then you are exempt. Contact the Ohio Bureau of Motor Vehicles for more information.
What do I need to know about the surety bond requirements?
For new dealers, proof that a surety bond has been secured must be submitted with the application. Make sure that you use the registered business name of the dealership, as filed with the Bureau of Motor Vehicles and Secretary of State.
There are two cases in which you may be exempt from this bond requirement. New motor vehicle dealers that also hold a used motor vehicle dealer license are exempt. Used motor vehicle dealer that held a license prior to the effective date of section 4501:1-3-11 of the OAC are also exempt.
What do I need to do after purchasing my bond?
You will need to mail the original bond to the Ohio Attorney General's Office at the following address:
Ohio Attorney General
Consumer Protection Section
Attn: TDRF Unit Surety Bond
30 E. Broad Street, 14th Floor
Columbus, OH 43215