Section 24 of 38
Chapter 23: Bonds and Certifications
23.055 Undocumented Vessel Surety Bond
An Undocumented Vessel Surety Bond (REG 5058) 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 §9923, CCR §190.03)
— The value of the vessel is $2000 or more.
— A release from the legal owner/lienholder cannot be obtained.
— An application is being submitted by a dealer, dismantler, or registration service.
A Motor Vehicle Ownership Surety Bond (REG 5057) form is acceptable for any vessel, including a vessel from another state or country, 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 vessel, as determined by one of the following:
- A written appraisal provided by a California or other state-licensed yacht and shipbroker.
- A Statement of Facts (REG 256) form 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 variations 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.
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 www.dmv.ca.gov.