Certificate Of Ownership By Bond

Whenever an applicant for a new "certificate of title" is unable to satisfy the Department that he is entitled thereto as provided in Chapter 3 of the Motor Vehicle Title and Registration Law, the applicant may nevertheless obtain issuance of such certificate of ownership by filing a bond with the Department as a condition to the issuance thereof: Such bond may be executed by a Corporate Surety Company duly licensed to transact business in the State of Tennessee, or a personal bond with two solvent personal sureties thereon. The bond shall be in an amount equal to one and one-half times the value of the vehicle as determined by the Department. The Surety Bond shall be executed on a form prescribed by the Department. (See Exhibits (a) and (b) which are also a part of this regulation.) (1) RS-51 MOTOR VEHICLE TITLE BOND PERSONAL SURETY SURETY BOND STATE OF TENNESSEE COUNTY OF _________________ KNOW ALL MEN BY THESE PRESENTS: That we, __________________________________________________________________________, PRINCIPAL, and, __________________________________________________________________________ and, ________________________________________________________________________, Surety and, ________________________________________________________________________, Surety are jointly and severally held and bound into the Commissioner of Revenue of the State of Tennessee, and his successors in office, hereinafter referred to as the Commissioner, for the use and benefit of the State of Tennessee, in the just and penal sum of ____________________________________________________________________. The conditions of this obligation are such that the above bounded _____________________________ Principal, said Principal having made application to the State of Tennessee, Department of Revenue for a motor vehicle Certificate of Title to cover ___________________________ as authorized by T.C.A. §55-3-103, as amended. Whereas, the Surety is held and firmly bound to indemnify any prior owner or lienholder, any subsequent purchaser of the vehicle or persons acquiring any security interest therein, and their respective successors in interest, TITLE BONDS CHAPTER-1320-8-9 against any expense, loss or damage by reason of the issuance of a Certificate of Title or an account of any defect in or undisclosed interest in the right, title and interest of the Principal in and to said motor vehicle, for the payment whereof well and truly to be made, we bind ourselves, our heirs, executors, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, the said Principal states that he is unable to present a Certificate of Title to said motor vehicle because the same has been lost, or is being unlawfully retained by one in possession, or is not otherwise available; and WHEREAS, the Department of Revenue, has advised said Principal that a Certificate of Title would be issued upon the filing of a bond as authorized by T.C.A. §55-3-103, and WHEREAS, an action for damages on said bond may be instituted by any person injured by the issuance of the certificate of Title to said Principal; NOW, THEREFORE, and in consideration of the issuance of a Certificate of Title by the Department of Revenue, this bond is given by the above bound Principal in compliance with T.C.A. §55-3-103 and conditioned upon the rights and remedies provided therein. It is hereby agreed and understood by the sureties on this bond: (1) That action may be maintained on said bond against any one or all of said sureties without making the Principal a party thereto, same being a joint and several obligation. (2) The bond is being held by the Department of Revenue for examination, use and benefit of any prior owner or lienholder or any person acquiring any security interest in the vehicle listed herein. Upon issuance of said Certificate of Title, this bond shall become effective and remain in full force and effect for a period of three years unless it is surrendered to the State of Tennessee, Department of Revenue, as provided in T.C.A. §55-3-103. PROVIDED, HOWEVER, that the aggregate liability of the surety to all persons for damage by reason of the issuance of said Certificate of Title shall not exceed the amount of the bond. WITNESS our signature on this the _____ day of ____________, 20___ _______ __________________PRINCIPAL _________________________ BY_________________________________ _____________________________SURETY _____________________________SURETY Sworn to and subscribed before me this _____ day of ______________, 20__. Signature of Notary Public _________________________________________ My Commission expires ___________________________________________ (2) MOTOR VEHICLE TITLE CORPORATE SURETY BOND TITLE BONDS CHAPTER-1320-8-9 SURETY BOND STATE OF TENNESSEE COUNTY OF DAVIDSON KNOW ALL MEN BY THESE PRESENTS: That we, ___________________________________________________________________________ (Name and Address of Applicant) Principal, said Principal having made application to the State of Tennessee, Department of Revenue, for a Motor Vehicle Certificate of Title to cover ____________________________________________________________ (Make of Vehicle) (Identification Number) in accordance with T.C.A. §55-3-103, as amended, and ________________________________________________ (Name and Address of Surety) Surety, a corporation duly authorized and licensed to write official surety bonds in the State of Tennessee, are jointly and severally held and firmly bound to indemnify any prior owner or lienholder, any subsequent purchaser of said vehicle or person acquiring any security interest therein, and their respective successors in interest, against any expense, loss damage by reason of the issuance of a Certificate of Title or on account of any defect in or undisclosed interest in the right, title and interest of the Principal in and to said motor vehicle; in the sum of ________ Dollars ($_______) lawful money of the United States of America, for the payment whereof well and truly to be made, we bind ourselves, our heirs, executors, successors and assigns, jointly and severally, firmly by these presents. The condition of the foregoing obligation is such that, WHEREAS, the said Principal states that he is unable to present a Certificate of Title to said motor vehicle because the same has been lost, or is being unlawfully retained by one in possession, or is not otherwise available; and WHEREAS, the Department of Revenue, has advised said Principal that a Certificate of Title would be issued upon the filing of a bond as authorized by T.C.A. §55-3-103. WHEREAS, an action for damages on said bond may be instituted by any person injured by the issuance of the Certificate of Title to said Principal; NOW, THEREFORE, and in consideration for the issuance of a Certificate of Title by the Department of Revenue, this bond is given by the above bound principal in compliance with T.C.A. §55-3-103 and It is hereby agreed and understood by the sureties on this bond: (1) That action may be maintained on said bond against any one or all of said sureties without making the Principal a party thereto, same being a joint and several obligation. (2) The bond is being held by the Department of Revenue for examination, use and benefit of any prior owner or lienholder or any person acquiring any security interest in the vehicle listed herein. Upon issuance of said Certificate of Title, this bond shall become effective and remain in full force and effect for a period of three (3) years unless it is surrendered to the State of Tennessee, Department of Revenue, as provided in T.C.A. §55-3-103. TITLE BONDS CHAPTER-1320-8-9 PROVIDED, HOWEVER, that the aggregate liability of the surety to all persons for damage by reason of the issuance of said Certificate of Title shall not exceed the amount of the bond. Witness our signature on this ___ day of ____________, 20___. BOND NO. _____________ __________________________PRINCIPAL BY_________________________________ TITLE_______________________________ (Affix Seal, If Corporation) _____________________________, SURETY _____________________________, SURETY _____________________________________ (Affix Corporate Seal) (If a partnership, each member of partner ship sign below): _______________________________________ _______________________________________ _______________________________________ _______________________________________ APPROVED: ___________________________ Commissioner of Safety (NOTE): Surety bond must be executed by a surety company authorized to do business in the State of Tennessee; must be executed by an attorney-in-fact and a copy of the power of attorney must be attached. If the attorney-in-fact is not licensed in Tennessee the bond must be countersigned by resident Tennessee Agent.