Chapter 10, Section F:|
General Surety, Indemnity or Certificate of Title Bond
Revised September 10, 2008
Statutory Basis for Surety Bond Process
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 or certificate of title bond may be used when no title or other supporting
documents which are necessary to process the title application are
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
- 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
- VIN Inspection
A Motor Vehicle Division
Certified VIN Inspector must inspect the vehicle. The same VIN must appear on
all required documents.
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
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
- 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
- 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.