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Class II License

To:             Used Car Dealers (Class II Licensees)

From:               Middleton Board of Selectmen

Subject:        $25,000 Bond Now Required For All License renewals!

As most of you know, a revision to Section 58 of Chapter 140 of the Massachusetts General Laws requires all Class II (used car dealers) to be bonded in the amount of $25,000 as a condition of license renewal.

This law stipulates that every Class II dealer must present to the city or town in which he is licensed proof of a $25,000 bond or acceptable alternative at the time of the renewal of the Class II license. Acceptable alternatives to posting a bond are detailed in the law and include an irrevocable letter of credit or a certificate of deposit in the amount of $25,000. (see attached excerpt from Chapter 140, Section 58).  

Please provide the $25,000 bond or acceptable alternative with the renewal of your Class II License and a signed state tax affidavit and $90 renewal fee.  The Board will not issue renewals to any license holder who fails to submit evidence of the required bond by this date.