Motor Vehicle Dealer Bond in North Dakota

What this bond requires in North Dakota

North Dakota requires a $25,000 surety bond for standard motor vehicle dealers under NDCC Ch. 39-22, using the NDDOT SFN 2933 form. Trailer dealers (SFN 2898) require $10,000 and mobile/manufactured home dealers (SFN 2935) require $50,000. The bond is continuous; cancellation triggers automatic license suspension, and name changes require a bond rider filed with MVD.

Who requires it

The motor vehicle dealer bond is required by the North Dakota Department of Transportation, Motor Vehicle Division - Dealer Services under NDCC Chapter 39-22 (Motor Vehicle Dealer Licensing).

How to file in North Dakota

Applicants complete SFN 02932 (Application for Dealer License) and file it with the Motor Vehicle Dealer Bond form (SFN 02933) executed by an authorized surety with the North Dakota DOT Motor Vehicle Division Dealer Services unit. The bond runs continuously until cancelled; the license is renewed annually but no new bond is required if the existing bond remains in force and the dealership name is unchanged.

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FAQ

Common questions

Is a motor vehicle dealer bond required in North Dakota?

Yes. North Dakota requires motor vehicle dealer bonds issued by an admitted surety. The required amount is $10,000 to $50,000.

How much is the bond in North Dakota?

The bond amount is $10,000 to $50,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the North Dakota Department of Transportation, Motor Vehicle Division - Dealer Services.

How is the bond filed?

Applicants complete SFN 02932 (Application for Dealer License) and file it with the Motor Vehicle Dealer Bond form (SFN 02933) executed by an authorized surety with the North Dakota DOT Motor Vehicle Division Dealer Services unit. The bond runs continuously until cancelled; the license is renewed annually but no new bond is required if the existing bond remains in force and the dealership name is unchanged.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.