Who requires it
Iowa Department of Transportation — Motor Vehicle Division
License & permit · Iowa
Iowa Motor Vehicle Dealer Bond
Iowa motor vehicle dealers and towable recreational vehicle dealers must file a $75,000 surety bond with the Department of Transportation before the dealer license issues. Iowa Code § 322.4 sets the seventy-five-thousand-dollar amount for dealers selling vehicles that require a certificate of title. 761 IAC 425.4 applies the same $75,000 amount to towable RV dealers and allows a dual-licensed dealer at one name and principal place of business to rely on a single bond. Evidence stays on file with the motor vehicle division, and the original bond remains with the dealer’s business records.
Common bond amount
$75,000
Fixed $75,000 for motor vehicle and towable RV dealers; dual license at same name/location needs only one bond (761 IAC 425.4).
How you file
File DOT Form 417064 with the motor vehicle division
Renewal
Maintain while licensed; 30-day cancellation notice to motor vehicle division
Who requires it
Applicants for and holders of an Iowa DOT motor vehicle dealer license or towable recreational vehicle dealer license under chapters 322 and 322C. Selling more than six motor vehicles in a twelve-month period can trigger the presumption that a person is engaged in the business and needs a dealer license. Restricted and leasing paths follow separate DOT application tracks.
How much is required
Section 322.4(1)(g) fixes seventy-five thousand dollars as the dealer surety for titled-vehicle sales. Rule 761—425.4 repeats that amount for motor vehicle dealers and for towable recreational vehicle dealers, and it excuses a second filing when the applicant already holds the companion license under the same name at the same principal place of business.
How to get and file it
Have an Iowa-authorized surety execute Form 417064 (or the current DOT dealer bond form) in the name of the State of Iowa for $75,000. File evidence with the motor vehicle division as part of the dealer application package, keep the original with business records, and schedule the required on-site facility inspection before expecting the license to issue. Maintain the bond while licensed. The surety must give the motor vehicle division at least thirty days’ notice before cancellation. Renew the dealer license by the expiration month and replace the bond promptly if the surety cancels so dealer privileges do not lapse.
Cost note
Seventy-five thousand dollars is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Required amount
- $75,000
- Authority
- Iowa Code § 322.4(1)(g); 761 IAC 425.4
- Dual-license rule
- One bond may cover motor vehicle and towable RV licenses at the same name and principal place of business
- Cancellation notice
- At least 30 days to the motor vehicle division
Official sources
Related resources
Frequently asked questions
Do towable RV dealers use a different Iowa bond amount?
No. 761 IAC 425.4 sets $75,000 for towable recreational vehicle dealers as well. If you already hold a motor vehicle dealer license under the same name at the same principal place of business, you are not required to file a second bond for the towable RV license.
Who does the Iowa dealer bond protect?
Section 322.4 conditions the bond on compliance with Iowa’s dealer statutes and indemnifies purchasers for losses from chapter 321 and 322 failures—including failure to furnish a proper certificate of title—and for odometer violations under section 321.71.
Related Iowa bond guides
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$5,000
Iowa does not split plumbing, HVAC, refrigeration, sheet metal, and hydronic contractor licenses into separate statewide surety products. Iowa Code § 105.19 requires every chapter 105 contractor licensee to maintain public liability insurance and a surety in the amount the Plumbing and Mechanical Systems Board sets by rule. 481 IAC 431.3 fixes that surety at a minimum of $5,000 for the licensing period. One entity bond covers all plumbing or mechanical work the legal entity performs; sole proprietors must hold the bond personally.
Mortgage Lender Bond
$25,000 / $100,000 / $150,000
Iowa mortgage bankers, mortgage brokers, and closing agents must maintain chapter 535B sureties with the Division of Banking. Iowa Code § 535B.9 starts mortgage broker and banker applicants at $100,000 until the superintendent’s volume schedule applies, and it sets closing agents at $25,000. 187 IAC 18.2 implements the operative banker/broker amounts: $100,000 when prior-year residential mortgage volume is $100,000,000 or less, and $150,000 when volume exceeds $100,000,000. Filings run electronically through NMLS.
Money Transmitter Bond
$100,000–$500,000
Iowa money transmitter applicants and licensees must keep a surety bond acceptable to the superintendent under Iowa Code § 533C.802. The amount is the greater of one hundred thousand dollars or one hundred percent of the licensee’s average daily money-transmission liability in Iowa for the most recently completed three-month period, capped at five hundred thousand dollars. Holding the $500,000 maximum excuses the average-daily-liability calculation. Filings typically run through NMLS with the Division of Banking.
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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