Revised September 10, 2008

Statutory Basis for Surety Bond Process (66-3-24C)

Section 66-3-24C NMSA 1978 provides that (emphasis added):

In the absence of the regularly required supporting evidence of ownership upon application for certificate of title, registration or transfer of a boat required to be titled under the provisions of the Boat Act or a vehicle, the division may accept an undertaking or surety bond, in an amount double the value of the boat or vehicle, which shall be conditioned to protect the department and all officers and employees of the department and any subsequent purchaser of the boat or vehicle, any person holding or acquiring a lien or security interest on the boat or vehicle or the successor in interest of the purchaser or person against any loss or damage on account of any defect in or undisclosed claim upon the right, title and interest of the applicant or other person in and to the boat or vehicle. The bond shall run to the true owner or the lien holder. The bond shall expire three years after the date it became effective.

General Surety, Indemnity or Certificate of Title Bond

A general surety bond, indemnity bond or certificate of title bond may be used when no title or other supporting documents which are necessary to process the title application are available.

However, the bonding process may not supersede any type of lien process, (tow, mechanic, storage, landowner, abandoned vehicle). If there are no supporting documents to show ownership, and a lien process is available, titling must be through the lien process

The title and registration must be applied for in the name of the person or company that has posted the bond.

Documents Required to Process Title with Surety Bond

• Title Verification
  
  If the registered owner and lien holder are known, they must be notified by registered mail, with return receipt requested. We can provide lienholder information. However, due to the confidentiality Law, Motor Vehicle Division will not provide confidential information from the vehicle files for this purpose.
  
  Note: Applicant must make every effort to contact the last registered owner. When there is any indication that the vehicle is titled or registered in another licensing jurisdiction, the applicant must ALSO request title verification from that licensing jurisdiction. If title verification reveals a registered owner, the registered owner and lien holder, if any must be contacted, by registered mail, with return receipt requested, to request the title. The Post Office “Return Receipt,” along with a copy of the letter or letter which came back unclaimed, must accompany the title application documents.
   
• VIN Inspection
  
  A Motor Vehicle Division Certified VIN Inspector must inspect the vehicle. The same VIN must appear on all required documents.
   
• NCIC Clearance
  
  An “NCIC Clearance”, is a statement from law enforcement indicating that the vehicle is not listed as “STOLEN” on their files. Applicant must submit a completed NCIC Certificate of Clearance.
  
  Note: NCIC Clearance is only valid for 30 days, therefore, applicant may have to obtain another NCIC Clearance before submitting paperwork for issuance of a New Mexico Title.
   
• General Surety, Indemnity or Certificate of Title Bond
  
  The applicant must purchase the bond from a bonding company authorized to do business in New Mexico. The bond must be for twice the value of the vehicle and issued for a term not to expire for three years after issuance. The value of the vehicle for bonding purposes must be comparable to the most recent NADA Used Car Guide Listing, NADA Antique Car Guide or a certified appraisal. The Vehicle Identification Number on the Title Verification, VIN Inspection, and NCIC Clearance must all correspond with the one on the bond.
  
  The bond must be a General Surety Bond, Indemnity Bond or Certificate of Title Bond and must indicate that it covers all documents used to support issuance of the Title. The bond must state:
  a. Where the Bond Company is organized (parent company).
  b. That the bonding company is authorized to conduct business in New Mexico, and that they are authorized to transact surety bonds.
  c. That the bonding company will be responsible for all liabilities that might be incurred because of the issuance of title, based on the bond and will hold the Motor Vehicle Division, or it's employees, harmless against any loss or damage from any action taken against the bond.
  d. That the bond will run three consecutive years.
   
• Odometer Mileage Statement
  
  If the vehicle is a motor vehicle (except off-highway vehicles) the applicant must acknowledge the odometer mileage at the time of sale.
  
  Note: If seller did not provide an odometer disclosure statement, capture the odometer on the vehicle and enter “NM.”
   
• Fees for Title and Registration Issued with Bond
  
  Charge the regular titling and registration fees. Compute the excise tax based upon one-half (1/2) the amount shown on the bond. The Application for Title and Registration MUST be made within 30 days from the date of issuance of the bond or late registration fees apply. After ninety days, excise tax is 4.5%.

Note: All of the above documents must be submitted with the Title Application.

The documents must be the original documents. Copies will not be accepted. Each document must be inspected for erasures, alterations, strikeovers, additions or any other discrepancies. Reject the application if there are any of these on any document.