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Arizona & Washington Aircraft Dealer Bonds




The Arizona Department of Transportation requires all aircraft dealers to file a $10,000 surety bond, and the State of Washington requires a $25, 000 surety bond. These bonds are necessary in order to comply with local, state, and federal licensing requirements.

Each state has their own form of an aircraft dealer bond, so transactions in each state require a different form of this bond. An aircraft dealer must be registered before conducting business with clients.

Arizona

The aircraft dealer bond prevents unlawful and fraudulent selling of aircrafts in Arizona. Fraudulent sales include illegal sales, not filing tax records, interest payments, penalties, or other fees. Aircraft purchasers are protected by the surety bond, since the bond ensures all sales are legal and honorable. The bond guarantees the aircraft dealer will not violate any state contracts or any terms of agreement. However, in order to legally get this type of bond, the dealer must be registered in the state of Arizona.

The bond is continuous until the principle cancels the bond or if it is revoked. If the principle violates any terms within the surety bond, the principle is in violation of the bond contract and guilty of a class 6 felony.

Washington

Any broker of an aircraft is legally obligated to file a Washington aircraft dealer surety bond. The bond guarantees the principle will comply with all provisions of 47.68.250, and 82.48.100. Any client that is at a financial or legal loss at fault of the dealer will be paid out by the bond. The dealer’s license would then be revoked, suspended, or refused. Similar in Arizona, all aircraft dealers applying for this type of bond must be registered in Washington in order to get this bond type.

A broker that sells and/or exchanges 2 or more aircrafts within 1 calendar year must be licensed and bonded. Licensing applications need to be submitted to the Washington State Department of Transportation, Aviation Division.

As stated above, each state has their own type of aircraft dealer bond. To apply for a bond for any state, visit Surety 1’s free online application.




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