Mississippi Certificate of Title Bonds are needed when the state is not satisfied with a title applicant’s ownership of a vehicle, manufactured home or motorhome. These bonds can be purchased easily online in minutes.
A Mississippi Certificate of Title Bond is a surety bond that provides financial protection to previous and future owners, lienholders and interested parties of a vehicle, manufactured home or motorhome if they are harmed because the state issued a title for the applicant. The code is addressed under Mississippi Code 63-21-23.
An applicant who is the called principal purchases the bond from a surety bond company (the surety). The applicant also provides the surety with indemnity, agreeing to reimburse the surety for losses. The surety then provides a financial guarantee to the State of Mississippi Department of Revenue (DOR). This party is called the obligee.
If an interested party suffers damages because the principal obtained a title with a defect in or undisclosed security interest in the right, title or interest in the vehicle, motorhome, or manufactured home, that party can make a claim against the title bond. They can recover expenses and damages including reasonable attorney’s fees against the bond.
If a claim does occur, the surety will investigate and pay the claim. The surety can then seek to be reimbursed by the principal under the indemnity agreement.
Mississippi Certificate of Title Bonds are easy to obtain. These bonds can be purchased online in minutes without a credit check in most cases. Applicants will need to provide their contact information along with information on the vehicle that needs a title. This includes the vehicle’s year, make, model, Vehicle Identification Number (VIN), number of cylinders, and body type. The applicant will also need to know the vehicle’s value.
The state of Mississippi requires a certificate of title bond to be in the amount of one and one-half times (1.5X) the value of the vehicle, motorhome, or manufactured home. For example, a vehicle valued at $30,000 would require a title bond in the amount of $45,000. The value is determined by the DOR.
Regardless of the dollar amount of claims, or the number of claims filed, the bond amount is the most the surety bond company will have to pay against the bond. This does not necessarily relieve the principal of additional liability though.
A Mississippi Title Bond costs 1% or less in most cases. For example, a $20,000 bond can be purchased online for $180 with no credit check. There is usually a $100 minimum premium for small bonds. Learn more about how surety bonds are priced.
A Mississippi title bond must be in place for three years. Once the three year period expires, no additional liability will accrue on the bond. At the end of three years, the state shall return the bond unless they have received notice of a claim or pending action against the bond.
Mississippi does allow an applicant to post cash instead of a surety bond. While this might save the applicant some money, it may not be the best idea. Consider that this cash must still be for 1.5 times the vehicle's value, which could be a significant amount of money. Additionally, the cash must still be tied up for the entire three-year period. You can read more about cash and surety bonds by clicking the image to the right.
Certificate of Title Bonds are needed in Mississippi when the state is not satisfied with the ownership of a vehicle, manufactured home or mobile home. These bonds are inexpensive and can be purchased online without a credit check. You can learn more about bonded titles and surety bonds by visiting the pages below. Contact the bond experts at Axcess Surety today for all your bond needs.
Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.
