An automotive surety or title bond is required by the State of Texas when a vehicle owner does not have sufficient proof of vehicle ownership. A surety bond is helpful if you are unable to find the original title for your vehicle, or register your vehicle because there is insufficient documentation.
If you own your vehicle and are looking to obtain the title, but there are challenges, a surety or title bond can help you. There are three parties involved in the bond that can help you obtain the vehicle title, even if the finance company closes down after you pay off your vehicle.
The person or company that receives the obligation or payment.
The person or company responsible for the obligation or payment.
The insuring party, which guarantees to the Obligee that the Principal can complete the task of being insured.