What is a Maryland Boat Dealer Bond?
A quick guide to one of the most important requirements for boat dealers in Maryland!
What is a Boat Dealer Bond?
As mandated by the Maryland Department of Natural Resources, manufacturers or dealers must be issued a license first before they can become boat dealers.
One of the major requirements of the said license is a surety bond.
The purpose of the surety bond is to ensure that the licensed boat dealer will conduct his or her duties as dictated by the State Boat Act and the regulations promulgated by the Maryland Department of Natural Resources.
The bond will also serve as a guarantee that any person who will suffer damages or losses from the wrongful acts of the boat dealer will be rightfully compensated.
Some of the violations include failing to send the monies that the boat dealer has collected within 30 days of sale to the Maryland Department of Natural Resources.
What is the Boat Dealer Bond amount?
$20,000 – the bond amount required for the first license year
The bond amount for the following years will be based on the sales during the previous 12 months.
|GROSS ANNUAL SALES||BOND AMOUNT|
|$500,000 or less||$5,000|
|500,000 to 1,000,000||10,000|
|1,000,000 to 3,000,000||20,000|
|3,000,000 to 5,000,000||50,000|
|5,000,000 to 10,000,000||100,000|
|10,000,000 to 15,000,000||150,000|
|More than 15,000,000||200,000|
If you have an excellent credit score, you will be eligible to pay for a low bond premium!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Boat Dealer Bond?
You can easily get this surety bond from us! We will guide you through the entire process. We’ll make sure that you will understand what you are getting into.
Here’s how to do get bonded:
- You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
- After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three in order to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Your surety bond will be issued and sent to you!
What are the surety bond conditions?
- The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in the State of Maryland
- The Obligee should be the State of Maryland, Department of Natural Resources
- The licensed boat dealer must comply with the provisions of the State Boat Act as well as the rules and regulations of the Maryland Department of Natural Resources
- If the licensee commits a violation, the Obligee will be eligible to file for a claim against the bond