Motor Vehicle Franchise Only Dealers operating in the State of Iowa are required under Iowa Code Chapter 321 and 322 to execute an Iowa Motor Vehicle Dealer Franchised Only Dealer Bond to ensure compliance with licensure.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The Iowa Motor Vehicle Dealer Franchised Only Dealer Bond holds you accountable for your business decisions.
By possessing an Iowa Motor Vehicle Dealer Franchised Only Dealer Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.