Who requires it
Office of the State Bank Commissioner / Department of Finance
License & permit · Delaware
Delaware Motor Vehicle Dealer Bond
Delaware does not impose a single blanket DMV dealer bond on every licensed seller. Sales finance companies licensed under Title 5 Chapter 29 must file a $25,000 surety bond—or a Commissioner-accepted irrevocable letter of credit—with the Office of the State Bank Commissioner under §2914. Separately, a motor vehicle dealer who is not required to post that Chapter 29 instrument and who, as a retail seller, self-finances any sale without charging interest must lodge a $25,000 original bond with the Department of Finance under 30 Del. C. §3005 before the annual dealer license issues. Both amounts protect consumers against wrongful acts, omissions, default, fraud, or misrepresentation in the licensed activity; claims cannot exceed the bond amount.
Common bond amount
$25,000
Ch. 29 sales finance licensees (§ 2914); self-financing dealers outside Ch. 29 (§ 3005). Not a universal DMV bond for every dealer class.
How you file
Surety bond, or irrevocable letter of credit for Chapter 29 sales finance
Renewal
Keep in force for the license period; 30-day cancellation notice
Who requires it
Chapter 29 sales finance company licensees (including retail sellers who create and hold retail installment contracts) filing with the State Bank Commissioner, and Title 30 motor vehicle dealers who self-finance interest-free retail sales and are not already bonded under Chapter 29.
How much is required
Section 2914 fixes $25,000 for every Chapter 29 licensee. Section 3005 likewise fixes $25,000 for the Finance-filed self-financing dealer bond. Neither statute publishes a volume ladder for these instruments. The Commissioner may accept an irrevocable letter of credit instead of the Chapter 29 bond; §3005 requires a surety authorized in Delaware.
How to get and file it
Identify whether you need the Office of the State Bank Commissioner Chapter 29 sales finance bond, the Department of Finance §3005 dealer bond, or both paths for different activities. Have an authorized surety issue the form the receiving agency accepts in the exact legal name on your license application, then file the original with the Commissioner or the Secretary of Finance as the statute directs. Keep the bond in force for the license period so it does not expire before midnight on the license expiration date. Provide amended originals immediately when the surety changes. Cancellation is ineffective unless written notice reaches the Commissioner or Finance Secretary at least thirty days before the cancellation date. Replace coverage before that effective date so the license remains supported.
Cost note
Twenty-five thousand dollars is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Sales finance company (Title 5 Ch. 29)
- $25,000 to the State Bank Commissioner (§ 2914)
- Self-financing dealer outside Ch. 29
- $25,000 to the Department of Finance (§ 3005)
- Cancellation notice
- At least 30 days’ written notice to the receiving agency
Official sources
Related resources
Frequently asked questions
Is the Delaware auto dealer bond required for wholesale-only dealers?
Chapter 29 bonding follows sales finance company licensure, not every DMV dealer class. Section 3005 reaches dealers who self-finance retail sales without interest and who are not already under Chapter 29. Wholesale or other dealer classes that neither finance under Chapter 29 nor self-finance under §3005 should confirm Dealer Services and Finance requirements for their specific package rather than assuming a universal $25,000 face.
Can I use a letter of credit instead of a surety?
For Chapter 29 sales finance licenses, §2914 lets the Commissioner accept an irrevocable letter of credit from an insured depository institution in the same $25,000 amount. Section 3005’s Finance-filed dealer bond is framed as a surety bond—confirm with Finance before substituting other coverage.
Related Delaware bond guides
Mortgage Broker / Lender Bond
$25,000 / $50,000–$200,000
Delaware mortgage loan brokers licensed under Title 5 Chapter 21 must file a $25,000 surety bond—or a Commissioner-accepted irrevocable letter of credit—with the Office of the State Bank Commissioner under §2108. Licensed lenders under Chapter 22 instead carry a Commissioner-set bond between $50,000 and $200,000 under §2208. Regulation 2204 translates that statutory range into a prior-year Delaware loan-volume table stepping from $50,000 through $200,000, and the Commissioner may demand a larger amount based on individual circumstances. A qualifying company bond may cover mortgage loan originators who are employees or exclusive agents when Chapter 24 and Regulation 2401 coverage rules are satisfied; an irrevocable letter of credit may not be used to cover originators.
Money Transmitter Bond
$100,000–$500,000
Money transmitters licensed under Delaware’s Money Transmission and Virtual Currency Modernization Act must file an original surety bond with the Office of the State Bank Commissioner. Section 2309 directs the Commissioner to set the amount anywhere from $100,000 to $500,000 after weighing the licensee’s average daily Delaware money-transmission liability, tangible net worth, total assets, and any other factor the Commissioner finds relevant. A licensee that posts the $500,000 maximum need not calculate average daily liability. The bond runs to the State for the Commissioner and for consumers injured by wrongful acts, omissions, default, fraud, or misrepresentation in the licensed activity; claims cannot exceed the bond amount.
Public Adjuster Bond
$20,000
Anyone applying for a Delaware public adjuster license must file a $20,000 bond with the Insurance Commissioner from a surety authorized in the State. Section 1752 conditions the bond on faithful performance of public-adjuster duties, and the Commissioner may recover damages if the licensee is convicted of fraud or unfair practices in that business. The public adjuster license ends automatically when the bond is not in force.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
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Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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