Aircraft dealer surety bond cost
The Aircraft Registration Unit of the Arizona Department of Transportation requires the state’s aircraft dealers to file a $10,000 surety bond. Premiums are calculated on an individual basis pending an underwriting review. Dealers with strong financial credentials can expect to pay a premium that’s just 1% of the bond amount, or approximately $100.
*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed or bound by the provision of rate quotes. Bondability, final bond premium rate quotes and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.
Why this bond
Arizona aircraft dealer surety bonds prevent aircraft dealers from conducting unlawful sales or failing to file tax records, interest payments, penalties and other related fees in a timely fashion. This specific bond type also acts as a guarantee to customers that the aircraft dealer will honor all sales contracts and won’t violate any terms of sales agreements.
These laws and more are all stated in the Arizona Revised Statutes, Title 28 – Chapter 25.Arizona aircraft dealer surety bonds are continuous until canceled. In the event the surety decides to cancel this bond, 60 days notice prior to cancellation is required.
All aircraft must be registered in Arizona prior to any sale. The type of aircraft is necessary for this process and must be noted on all appropriate forms. If a person is found guilty of violating their bond contract or any of the provisions of the Arizona Revised Statutes, Title 28 – Chapter 25, they are guilty of a class 6 felony.
Become an aircraft dealer
Once a principal (aircraft dealer) has been bonded, he or she can apply for an Arizona license for aircraft dealing. Upon filing for this license with the state of Arizona, aircraft dealers must:
- know their surety bond number
- appoint a business contact for the state to communicate with
- have their licensing application notarized
Apply for your surety bond
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- Arizona Motor Vehicle Division of the Department of Transportation Aircraft Dealer License Application
- Arizona State Legislature Arizona Revised Statutes – Title 28
- Arizona Department of Transportation Aircraft Services
- Arizona Motor Vehicle Division of the Department of Transportation Aircraft Exemption Affidavit
- Arizona Motor Vehicle Division of the Department of Transportation Application for Aircraft Registration