Minnesota Ownership and Security Interest Surety Bond - Certificate of Title

What is an Ownership and Security Interest Surety Bond?

An Ownership and Security Interest Surety Bond for Certificate of Title is required by the Minnesota Department of Public Safety when an individual or business applies for a vehicle title but cannot provide adequate proof of ownership or needs to clear title issues. This bond serves as a financial guarantee that protects the state and any prior owners or lienholders from potential losses due to fraudulent or disputed ownership claims.

Who Needs This Bond?

This bond is required for vehicle owners in Minnesota who need to obtain a certificate of title but lack proper documentation such as a previous title, bill of sale, or other standard ownership proof. Common situations include purchasing vehicles without titles, inherited vehicles with missing paperwork, or vehicles with title discrepancies that need resolution.

Bond Protection and Coverage

The bond protects the Minnesota Department of Public Safety and any legitimate prior owners, lienholders, or other parties with valid claims to the vehicle. If someone suffers financial loss due to the bonded party's fraudulent title application, they can file a claim against the bond for compensation. Bond amounts vary based on the vehicle's value, and the 3-year term provides extended protection during the period when title disputes are most likely to arise.