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Auto Dealer Services Division

Auto Dealer Services Division > Requirements > Dealer Bond Requirements Dealer Bond Requirements

Regarding Indiana House Bill 1376

The passage of Indiana House Bill 1376 affects Indiana Code Section 9, Chapter 23 (IC 9-23).

Effective July 1, 2009, Indiana House Bill 1376 mandates that Motor Vehicle Dealers will have to furnish proof that they have a $25,000 bond.

Below are answers to some of the most frequently asked questions regarding this new law:

Q: When will the bond requirement take effect?
A: The bond requirement will take effect for dealers upon licensing renewal starting with
July, 2009 renewal dates (July 31, 2009).

Q: What is the required bond amount?
A: The required bond amount is $25,000.

Q: What will be the bond period?
A: The bond dates should be effective for the entire licensing period. For example, if a dealer renews in July, the bond should be in effect until the expiration date of the license, which would be July 31, 2010.

Q: How may I obtain a copy of the required bond form?
A: The form for the bond is available here:

Q: Which dealer types will be required to have a bond?
A: All dealers with a motor vehicle license (Auction, New, Used, Manufacturer, Wholesale, RV, Transfer, etc.) that are licensed under Indiana Code 9-23 will be required to have a bond. Watercraft dealers and salvage operators are not governed under IC 9-23 and are not affected by HB 1376.

Q: Which address should I use to file the bond?
A: The Secretary of State Dealer Division is relocating to the Indiana Government
Center – South at the end of June 2009. Please use the following address to file the bond:


Indiana Secretary of State – Dealer Division
Indiana Government Center – South
302 W Washington Street, Room E018
Indianapolis, IN 46204

Should a bond need to be cancelled or non-renewed, a cancellation letter can also be sent to the Dealer Division at the above address.

Q: How can I obtain a copy of the new law?

To view IC 9-23 additions and changes effective July 1, 2009:
Visit the Indiana General Assembly Web site here and view IC 9-23-2-2.

For an overview of Indiana House Bill 1376:
Visit Bill Info here.

To view IC 9-23 as it currently stands:
Visit the Indiana General Assembly Web site here and view IC 9-23-2-2.

Please note: The Web page listed above may not yet be updated to include amendments from Indiana House Bill 1376 (thus excluding all pertinent information regarding the new bond requirement).

If you have additional questions, please contact the Secretary of State Dealer Division at
(317) 234-7190 or E-mail