The State of Alabama Department of Revenue, Motor Vehicle Division is responsible for the licensing of designated agents. Designated Agents process applications for certificate of title and include county license plate issuing officials, all Alabama motor vehicle dealers, and some financial institutions such as banks and credit unions. Non-dealer designated agents are not licensed motor vehicle dealers.
The Code of Alabama 1975, Sections 32-8-34 and 32-20-22, defines the designated agent license requirements which includes any company or person that performs their duties either personally or through any of their officers or employees must conduct faithful performance of their duties and provide a surety bond.
There is no cost for the premium as long as the Alabama Motor Vehicle Designated Agent is also a motor vehicle dealer. Otherwise there is a cost for a non-dealer designated agent who is not a motor vehicle dealer. Rates start as low as $100 for bond amounts under $10,000, and 1% of the amount for bonds over $10,000 with good credit.
A motor vehicle dealer license satisfies the designated agent bonding requirement.
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