Alabama § 40-12-448 Surety Bond

Alabama Statutes

§ 40-12-448 — Surety Bond

Alabama § 40-12-448

Title 40Revenue and Taxation

Ch. 12Licenses

Art. 10Motor Vehicle Wholesale Auctions

This text of Alabama § 40-12-448 (Surety Bond) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 40-12-448 (2026).

Text

(a)Except as provided in subsection (b), before being licensed under this article, a person shall demonstrate proof of responsibility by depositing with the commissioner a continuing surety bond in the amount prescribed under Section 40-12-398 from a company authorized to do business in the state. The bond must be approved by the commissioner, payable to the state, and conditioned upon the faithful observance of all the provisions of this article. The bond must also indemnify any person who suffers a loss by reason of failure to observe the provisions of this article.

(b)The department, by rule, may permit a surety bond obtained under Section 40-12-398 to serve in lieu of the surety bond prescribed in subsection (a).

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(a) Except as provided in subsection (b), before being licensed under this article, a person shall demonstrate proof of responsibility by depositing with the commissioner a continuing surety bond in the amount prescribed under Section 40-12-398 from a company authorized to do business in the state. The bond must be approved by the commissioner, payable to the state, and conditioned upon the faithful observance of all the provisions of this article. The bond must also indemnify any person who suffers a loss by reason of failure to observe the provisions of this article.
(b) The department, by rule, may permit a surety bond obtained under Section 40-12-398 to serve in lieu of the surety bond prescribed in subsection (a).