A Connecticut title bond is an appropriate instrument to offer with a registration application where the original title can either not be found or has an incurable defect in form. The use of a Connecticut certificate of title bond is authorized by the Connecticut motor vehicle titling statute. Subsection (b) of CT Sec. 14-166-1, states that upon application by the owner for a Connecticut certificate of title, either a valid out-of-state certificate of title for the vehicle shall be surrendered or a Connecticut vehicle title bond shall be posted for said vehicle in accordance with the provisions of Section 14-176 of the Connecticut General Statutes. The second regulating subsection is (c) of CT Sec. 14-166-1, which states that in the event a Connecticut certificate of title exists and the motor vehicle is transferred from one owner to another, the new owner must surrender the former Connecticut certificate of title when applying for the new one or, if the certificate of title cannot be surrendered, a certificate of title bond must be posted for said vehicle in accordance with the same provisions.
The surety bond must be issued in a form prescribed by the Commissioner and executed by the applicant and by a person authorized to conduct surety business in Connecticut. The surety bond must be written in an amount equal to twice the value of the vehicle as determined by the Commissioner. The Connecticut vehicle title surety bond must indemnify any prior owner and lienholder and any subsequent purchaser of the vehicle or person acquiring any security interest in it against any expense, loss or damage, including attorney’s fees which result from the issuance of a new certificate of title. The obligation insures against any defect in or undisclosed security interest upon the right, title and interest of the applicant for the new title. Any interested party has a right of action to recover on the bond for any breach of its conditions. The original Connecticut title bond tail was originally three years however the DMV’s current practice is to return the bond at the end of five (5) years, or prior thereto if the vehicle is no longer registered in Connecticut and the current title is surrendered to the Commissioner. Unless the Commissioner is aware of a pending action against the Connecticut vehicle title bond then the surety is released at the conclusion of the five year term.
Connecticut surety leader, Surety One, Inc. requires only a simple six line title bond application and issues the requested title bond immediately. We offer terms regardless of applicant credit condition. Visit us at SuretyOne.com, call (800) 373-2804, or email Underwriting@SuretyOne.com for an Connecticut vehicle title bond application or for further information about surety bonding.
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