Arkansas Title Bond

A bonded title is a certificate of title the Commissioner of Revenues issues with a surety bond (or an approved alternative) filed as security. DFA Regulation 1993-3, the “Bonded Title Regulation” (Agency 006.05, executed July 23, 1993), provides that “corporate surety bonds, certificates of deposit with assignment and irrevocable letters of credit which meet the requirements of this regulation may be accepted … where a bond is authorized under … [Ark. Code Ann. §§27-14-409 (c)]” (Reg. preamble).

Which vehicles qualify

The regulation defines an eligible “vehicle” as “any vehicle of a type required to be registered and titled in Arkansas, and which is in the possession of and legally controlled by the applicant for bonded title” (Reg. (1)(D)).

Which vehicles are excluded

The bonded-title route is not available for four categories (Reg. (1)(D)(i)–(iv)):

• a vehicle issued a junking certificate or similarly branded certificate of title;
• a vehicle for which a person holds a storage or mechanic's lien (separate lien statutes govern those);
• a stolen vehicle; or
• a vehicle involved in ownership litigation.

Form 10-345 makes you swear to each of these four conditions. If any applies, resolve it before using the bonded-title process.

Regulation 1993-3 and Form 10-345 state no residency, vehicle-age, or vehicle-value limit. The form does include a “dimensions if mobile home” field, so mobile homes are contemplated; boats and RVs are not addressed in these documents, so confirm eligibility for those with DFA.

For the general walkthrough that applies in any state, read how to get a bonded title.

The Arkansas sequence is unusual: you prove your situation and get the bond amount before you buy the bond.

Step 1: File Form 10-345 (Statement of Facts) first

The regulation defines the Statement of Facts as a form “filed with the Commissioner prior to the filing of a bond” (Reg. (1)(E)). Mail Form 10-345, with a bill of sale and, for a motor vehicle, a VIN verification, to:

Per the form, the application “must be accompanied by a bill of sale and verification of the motor vehicle identification number (VIN) on the form prescribed by the Arkansas State Police.” The VIN verification is done by a certified law enforcement officer of any Arkansas city or county, or by the Arkansas State Police or its designee. (The exact State Police form number isn't published on the DFA forms page; confirm with the Arkansas State Police or DFA.)

Step 2: DFA reviews eligibility and sets the bond amount

The Commissioner determines the vehicle's value and issues a letter of approval “establishing the amount of the bond to be filed” (Reg. (1)(F)). The form states: “Please allow ten (10) to twenty five (25) business days processing time.” The method DFA uses to value the vehicle isn't stated in these documents; confirm with DFA Bonded Titles.

Step 3: Buy and file the bond within 30 days

With the approval letter in hand, obtain the bond for 1.5 times the value DFA set. The bond must be filed with the Commissioner within 30 days of its effective date, and the application for bonded title must be made within 30 days of the bond's effective date: “An application presented more than 30 days after the effective date of the bond shall not be accepted” (Reg. (3), (4)(C)–(D)).

Step 4: The bond package is examined at a State Revenue Office

Deliver the bond together with (Reg. (3)(A)(vi)(a)–(e)):

• the application for registration and title, signed by the owner;
• the Commissioner's letter authorizing a bonded title;
• the original power of attorney, if applicable;
• any other documents needed for registration and title; and
• all requisite fees and taxes.

Bond transactions are examined at a State Revenue Office (Reg. (4)).

Estimate the figure before DFA sets it with the title bond calculator. The amount DFA states in your approval letter is the one that controls.

Arkansas requires a corporate surety bond on forms approved by the Commissioner, issued by an “insurer”: a holder of an Arkansas Insurance Commissioner certificate of authority to act as surety (or another guarantor the Commissioner approves). The bond is signed by the vehicle owner, is payable to the State of Arkansas upon presentation of a court judgment, and is signed by the insurer or its licensed agent or broker under a power of attorney (with the original POA delivered) and countersigned as required by law (Reg. (1)(C), (3)(A)(i)–(vi)). It must “be irrevocable for a period [of] three (3) years” (Reg. (3)(A)(iii)).

BuySuretyBonds is a licensed insurance agency (a producer). The carrier issues the surety bond, and you file it with DFA.

Two alternatives to a surety bond

The regulation lets the Commissioner accept, in place of a surety bond (Reg. (3)(B), (3)(C)):

• a certificate of deposit with an assignment (the assignment is held by the Commissioner for three years from delivery); or
• an irrevocable letter of credit from a bank or savings and loan, irrevocable for three years.

After the 3-year term

What happens to the title or bond at the end of the term isn't stated in Regulation 1993-3 or on Form 10-345. Confirm with DFA Bonded Titles before the term ends.

The bond amount is set by formula: “an amount equal to one and one half (1 ½) times the value of the vehicle as determined by the Commissioner” (Reg. (3)). You don't set that value. The Commissioner does, and the figure appears in your approval letter.

The bond amount is not what you pay. Your out-of-pocket cost is a premium quoted by the carrier: request an estimate above or model the bond amount with the title bond calculator.

On other fees: the regulation requires “all requisite fees and taxes” with the bond package (Reg. (3)(A)(vi)(e)), but a specific bonded-title fee is not stated in Regulation 1993-3, on Form 10-345, or on the DFA forms page. Confirm current fees and taxes with DFA.

If you process titles in volume, see title professionals for the dealer and title-service path.

Regulation 1993-3 is dated 1993, and no newer version was found on the DFA pages reviewed; Form 10-345 was posted 01/31/2024. Confirm current requirements with DFA before filing.

• DFA Regulation 1993-3, "Bonded Title Regulation" (Agency 006.05)
• DFA Form 10-345, "Statement of Facts for Issuance of a Bonded Title"
• DFA Office of Motor Vehicle: Motor Vehicle Forms