Pennsylvania increases bond amount for motor vehicle sales finance companies

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Gov. Tom Corbett of Pennsylvania signed HB 1128 into law on November 27, 2013. HB 1128 increases the required bond amount for motor vehicle sales finance companies from $5,000 to $10,000. The legislation also introduces a new bond requirement for collection-repossessing professionals.

The new bond requirements are stated in § 6213.

 “(a) Bond required.–A bond shall accompany each license application for a sales finance company and collector-repossessor.

 (b) Form.–The bond shall be in the form prescribed by the department.

 (c) Amount.–

          (1) A bond for a sales finance company shall be in the amount of $10,000.

(2) A bond for a collector-repossessor shall be in the amount of $5,000.”

This legislation change will go into effect on November 28, 2014.

If you’re in need of a surety bond in Pennsylvania or any other state, contact SuretyBonds.com online 24/7 or by phone at 1(800) 203-4358 Monday through Friday between 7 a.m. and 7 p.m. CST.

About the Author

Jon Gottschalk
Jon Gottschalk is the Senior Marketing Director for Suretybonds.com and regularly blogs at the Surety Bond Insider to keep consumers informed on new legislation and updates in the commercial surety industry. He is also a licensed property & casualty insurance producer in Missouri.