Appraisals | Cash Bond | Exceptions | Requirements | Trailers

Surety bond procedures are designed for use by applicants who have purchased a vehicle and no longer have the original title or did not receive adequate proof of ownership. A surety bond may not be used to obtain a title for:

• a foreign vehicle in lieu of customs documentation.
• a vehicle that has been abandoned.
• a vehicle obtained through a work and/or storage lien.
• a vehicle obtained through a towing and storage lien.

This law has specific requirements that must be met, but it also allows discretion in handling unusual situations. This law and the following procedures are not intended to be used to circumvent normal title procedures. As per AS 28.10.201(d), the vehicle must be physically present in the State of Alaska in order to be titled under these procedures.

This law provides liability protection to the Division by requiring that an applicant obtain a three-year non-cancelable title surety bond or deposit a cash bond with the Division. The bond financially protects the State in case of a legal dispute concerning ownership of the vehicle for which a title has been issued.

EXCEPTION: Trailers 1,000 pounds or less (empty weight). These are usually small boat, snow vehicle, or utility trailers. Some states do not title or register these small trailers.

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APPLICATION REQUIREMENTS

TRAILERS WITH AN EMPTY WEIGHT OF 1,000 POUNDS OR LESS:

• Application for Title and Registration (Form 812)
• Affidavit stating how the trailer was acquired and why normal title procedures cannot be followed.

VEHICLES EXCEPT TRAILERS UNDER 1,000 LBS. EMPTY WEIGHT:

The applicant should be given Form 824 that explains all the required steps. A temporary permit (T-90) may be issued if the applicant has documentation from the owner shown on DMV records.

• Application for Title and Registration (Form 812) completed and signed.
• Appraisal of the fair market value of the vehicle, on company letterhead or a similar form. Cannot be over 90 days old and the applicant and the appraiser may not be the same individual or company. (See the following page for additional information.)
• Affidavit (Form 824)
• Vehicle Title Surety Bond (Form 824) or Cash bond (See following page). The bond amount must be one and a half times the appraised value of the vehicle.
• Additional registration requirements, if applicable.
• A VIN inspection is required unless we have an ALVIN record or a state-issued document listing the VIN.

Note: A lien release is not required if there is an ALVIN record showing a lienholder.

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AS WITH ANY NORMAL SALE OF A VEHICLE, THE REGISTRATION DOES NOT START OVER UNLESS THE VEHICLE HAS BEEN EXPIRED OVER A FULL YEAR.

CASH BOND:

Cash or Check:

1. Must be cash, a cashiers check, certified check or money order. Uncertified personal checks are not acceptable.
2. Enter the amount using the fee code Y01 on the fee screen. (When there is not enough room, use the miscellaneous fee screen and code Y01. Use the plate number and last two digits of the VIN as your reference number.)
3. Make two copies of the check and one copy of all original documents, front and back, if applicable. If paid in cash, note denomination and quantity of bills collected in the "documents accepted" box.
4. Send a copy of the check and documents (see 3 above) to Fiscal Services. (Appendix A)
5. Submit the actual documents and a copy of the payment in your daily batch.

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Certificate of Deposit:

1. Make a copy of the certificate of deposit and all original documents. (Front and back, if applicable)
2. Send the original certificate of deposit and copies of all the paperwork to Fiscal Services. (See Appendix A)
3. Submit the actual documents and a copy of the certificate of deposit in your daily batch.

APPRAISALS:

Under normal circumstances, the appraisal should come from one of the following:

• Licensed dealer
• Insurance appraiser
• Bank

If none of these are available, or in lieu of any of these, you can go on the internet to http://www.kbb.com/ and determine the value for cars and trucks up to 20 years old. This resource can also be used if there is a concern that the appraisal is too low.

In areas of the state that do not have access to these resources, and when the information cannot be obtained from the Internet, use your best judgment as to what you accept for a vehicle appraisal.

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Cross Reference:

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