Alabama Auto Dismantlers And Parts Recycler Bond Increase

Alabama Gov. Bentley signed HB-62 into law on June 5, 2015, including a revision to the surety bond requirements for auto dismantlers and parts recyclers. The bond amount has been increased from $10,000 to $25,000 effective October 1, 2015.

The Alabama Department of Revenue has sent notifications to existing policyholders of the change.

What does this bond do?

This bond ensures that auto dismantlers and parts recyclers adhere to all provisions of Sections 40-12-410 through 40-12-425 of the Code of Alabama 1975. In the event of non-compliance, the bond protects consumers from undue financial damage by allowing them to file a claim against the bond.

What’s the fine print?

Auto dismantlers and parts recyclers must post an entirely new bond with the State using this form. Replacement bonds or bond riders will not be accepted per the notice from the Department of Revenue. There must be no lapse in coverage. If the surety chooses to cancel the bond, the DOR requires 60 days’ written notice. The surety retains liability during the 60 days prior to cancellation.

It’s important to note the quickly approaching deadline of October 1. Applying as soon as possible can help avoid a lapse in coverage and ensure business continues operating legally according to the state laws and regulations.

For more information and additional forms, visit the Alabama Department of Revenue or contact a reputable surety provider to get started on your new application.

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About the Author

Melanie Baravik
Melanie is a senior at the University of Missouri - Columbia studying English with an emphasis in creative writing. She is a member of the marketing department and outreach team for, a leading provider of online bonding for clients nationwide.