23.020 Motor Vehicle Ownership Surety Bond

A Motor Vehicle Ownership Surety Bond (REG 5057) form or a bond alternative must be submitted when the required supporting evidence of ownership is not available and at least one of the following conditions exist: (CVC §§4157, 38050 and CCR §152)

• Value of the vehicle is $5,000 or more.
• Value of the vessel is $2,000 or more.
• Vehicle is nontransferable (goldenrod).
• Release from the legal owner/lienholder cannot be obtained.

A REG 5057 is acceptable for a:

• Vehicle or vessel when regular evidence of ownership is unobtainable and a bond is required, including a vehicle or vessel from another state or country.
• Vessel provided the REG 5057 correctly identifies the vessel, has a rider attached covering the vessel, and is issued by an admitted surety insurer authorized to do business in California by the Department of Insurance.

The bond must be obtained for the fair market value of the vehicle or vessel, as determined by one of the following:

• Written appraisal provided by a California or other state-licensed dealer, motor vehicle insurance representative, or yacht and shipbroker.
• A REG 256 giving the valuation based on information provided in a recognized industry motor vehicle valuation and pricing handbook, such as the Kelley Blue Book. The REG 256 must also include:
  — The lowest and highest price valuations added together and divided by two,
  to get the average price of the vehicle which shall be used as the fair market value of the vehicle or vessel.
  Example: 1,000+2,000=3,000, 3,000÷2=1,500. Fair market value=$1,500.
  — Any information required for the diligent effort.

The bond must be signed by the surety and the signature must be notarized. A bond preprinted with the surety’s signature and notary acknowledgement is not acceptable.

Bond forms are available on DMV’s website at dmv.ca.gov.