California Lost Title Bond

California Lost Title Bond


California Lost Title Bond


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What is an California Lost Title Bond? 

California Lost Title Bonds are required by the state of California's DMV to obtain your title and register your vehicle, boat, RV, mobile home or trailer.  The bond ensures that you are the rightful owner of the vehicle, Mobile home, trailer etc. The Alaska Lost Title Bond guarantees damages up to the bond limit for a legitimate title holder that may surface in the future with a valid claim to the vehicle, Mobile home, boat or trailer.


Different parts of a bond:

 The bond is required when The Obligee (obligator) is the entity requiring you to get the bond.  There are 3 parts to a surety bond. The Principal, The Surety Company, and the Obligee. The Principal is the business or individual applying for the Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.

 

Try our 100%  Secure Lost Title Bond Online Application to get the Lowest Lost title bond rates in all 50 States.


Program:

You can buy your Alaska Lost Title Bonds (Apply) online immediately, with no credit check for most Lost Title Bonds.


How much does a Alaska Lost Title Bond cost?

For Alaska Lost Title Bonds under $5,000 the cost of the bond is $100. For bonds over $5,000 the rate is 1.5%


California Lost Title Bond Information and Requirements

Motor Vehicle Ownership Surety Bond (REG 5057) form or a bond alternative must be submitted when the required supporting evidence of ownership is not available and at least one of the following conditions exist: Show Citation 11

  • Value of the vehicle is $5,000 or more.
  • Value of the vessel is $2,000 or more.
  • Vehicle is nontransferable (goldenrod).
  • Release from the legal owner/lienholder cannot be obtained.

REG 5057 is acceptable for a:

  • Vehicle or vessel when regular evidence of ownership is unobtainable and a bond is required, including a vehicle or vessel from another state or country.
  • Vessel provided the REG 5057 correctly identifies the vessel, has a rider attached covering the vessel, and is issued by an admitted surety insurer authorized to do business in California by the Department of Insurance.

The bond must be obtained for the fair market value of the vehicle or vessel, as determined by one of the following:

  • Written appraisal provided by a California or other state-licensed dealer, motor vehicle insurance representative, or yacht and shipbroker.
  • REG 256 giving the valuation based on information provided in a recognized industry motor vehicle valuation and pricing handbook, such as the Kelley Blue Book. The REG 256 must also include:
    — The lowest and highest price valuations added together and divided by two,
    to get the average price of the vehicle which shall be used as the fair market value of the vehicle or vessel.
    Example: 1,000+2,000=3,000, 3,000÷2=1,500. Fair market value=$1,500.
    — Any information required for the diligent effort.

The bond must be signed by the surety and the signature must be notarized. A bond preprinted with the surety’s signature and notary acknowledgement is not acceptable.

In lieu of submitting a bond for a vehicle or vessel, a Vehicle, Vessel, or Off-Highway Vehicle Title Deposit Agreement and Assignment (REG 5059) form may be submitted for each deposit with one of the following: Show Citation 11

Lawful Money of the United States (Cash Deposit)

The cash deposit shall be:

  • Maintained by DMV in an interest-bearing trust account.
  • In the form of cash, cashier’s check, certified check, bank money order, traveler’s check, or personal check.
    — A personal check is not valid until the check has cleared the bank.

If no proceedings are pending to enforce the liability of the account then, on demand, the state shall pay quarterly to the depositor any interest on the deposited amount when earned in accordance with the terms of the account.

The procedures below must be followed:

  • Send all required documents to DMV headquarters.
  • Send the receipt and REG 5059 to the Accounting Unit, Attn: Special Funds in DMV headquarters for safekeeping.

Bearer Bond or Bearer Note of the United States or the State of California

The bearer bond or note shall have a market value:

  • Equal to, or in excess of, the amount that would be required to be secured by a bond issued by an admitted surety company.
  • Agreed upon by stipulation of the principal and beneficiary or, if the bonds or notes are given in an action or proceeding and the principal and beneficiary are unable to agree, the market value shall be determined by a court order.

Additional bearer bond information can be found in CCP §995.720.

Certificate of Deposit

The certificates shall:

  • Be payable to the State of California.
  • Have a monetary amount not exceeding the federally insured amount issued by banks or savings associations that are:
    — Authorized to do business in California.
    — Insured by the Federal Deposit Insurance Corporation (FDIC).
  • Show the name and address of the financial firm holding the deposit and be endorsed (signed) by the firm.
  • Show the effective date.
  • Be for a term of three years or, when there is no provision for the term of the assignment, it must remain valid until surrendered by DMV (assignee).

Assignment as Security

An assignment as security can be a:

  • Savings account.
  • Investment certificate or share account.
  • Certificate for funds or share accounts.

Savings Account

The savings account shall:

  • Be assigned to DMV (assignee).
  • Have a monetary amount not exceeding the federally insured amount, together with evidence of the deposit in the savings accounts with banks:
    — Authorized to do business in California.
    — Insured by the Federal Deposit Insurance Corporation (FDIC).
  • Be equal in value to the sum of money of the bond requested or the retail value of the vehicle/vessel in lieu of a bond, which allows them to earn interest on the security (deposit) during the time it is held.
  • Be accompanied by the account passbook.
  • Include the name of the person posting the assignment (assignor) and their signature.

Investment Certificate or Share Account

The investment certificate or share account shall:

  • Be assigned to DMV.
  • Have a monetary amount not exceeding the federally insured amount, issued by the saving associations:
    — Authorized to do business in this state.
    — Insured by the Federal Deposit Insurance Corporation (FDIC).

Certificate for Fund or Share Account

The certificate for funds or share account shall:

  • Be assigned to DMV.
  • Have a monetary amount not exceeding the federally insured amount, issued by the union, as defined in California Financial Code §14002, whose share deposits are guaranteed by one of the following:
    — The National Credit Union Administration.
    — Any other agency approved by the Department of Financial Institutions.

Additional Information

All deposits are to have a face value, or in the case of bearer bonds or notes, have a market value, equal to or in excess of the amount that would be secured by the surety bond.

The value of the vehicle or vessel is determined by one of the following:

  • Vehicles– a written appraisal provided by a California or other state-licensed dealer or motor vehicle insurance representative.
  • Vessels– a written appraisal provided by a California or other state-licensed yacht and shipbroker.
  • REG 256 giving the valuation based on information provided in a recognized industry motor vehicle valuation and pricing handbook, such as the Kelley Blue Book. The REG 256 must also include:
    — The lowest and highest price variations added together and divided by two, to get the average price of the vehicle which shall be used as the fair market value of the vehicle.
    Example: 1,000+2,000=3,000, 3,000÷2=1,500, Fair market value=$1,500.
    — Any information required for the diligent effort.

Notary Expiration Date—A California notary’s commission date is required for notarized signatures on:

  • An Application for Duplicate or Paperless Title (REG 227) form.
  • A Lien Satisfied/Legal Owner/Title Holder Release (REG 166) form, submitted in conjunction with a REG 227.

Officers of the Armed Forces—Commissioned officers on active duty with the U.S. Armed Forces may perform all notary public acts for any person serving in or with the U.S. Armed Forces and/or their spouse, wherever they are stationed
(CCC §1183.5). This includes:

  • U.S. Army or Air Force—any officer approved by the Judge Advocate General.
  • U.S. Marine Corps—any officer at or above the rank of captain.
  • U.S. Navy or Coast Guard—Any commanding officer or executive officer of a ship, shore station, or establishment, and any officer at or above the rank of lieutenant, senior grade

A motor vehicle or vessel bond alternative may be returned to the applicant if the following apply: Show Citation 11

  • The vehicle/vessel has ceased to be registered in this state for at least three years.
  • The currently valid California certificate of ownership is being surrendered to DMV.

Return of Lawful Money of the United States (Cash Deposit)

An Application for Refund (ADM 399) form, may be submitted to DMV for a refund of the cash deposit to the address shown on the ADM 399.

Return of a Bearer Bond, Certificate of Deposit, and Assignment as Security

The depositor must send a written request for the return of the certificates of deposit, bearer bonds, investment certificates, share accounts, or savings account to DMV at:

Department of Motor Vehicles
Registration Processing Units, MS C271
PO Box 942869
Sacramento, CA 94269-0001


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