Can a surety company cancel a bond on behalf of the dealer?

A surety company can indeed cancel a bond on behalf of the dealer, but such actions are subject to specific conditions, one of which is notifying the DMV in advance. This requirement is essential to ensure that the DMV is aware of any changes in the status of the surety bond, which serves as a financial guarantee for compliance with automotive laws and regulations.

Notifying the DMV ahead of time allows for the proper adjustment and oversight of the dealer's licensing and regulatory responsibilities. If a bond is canceled without such notification, it could lead to gaps in financial accountability and compliance, potentially putting consumers and the public at risk. Such procedures are in place to maintain transparency and stability within the automotive dealer industry. Therefore, the necessity to inform the DMV before cancellation underscores the importance of regulatory oversight in safe and ethical business practices.