Oregon’s Manufactured Structures Dealer Bond: Understanding the $40,000 Requirement

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Introduction to Oregon – Manufactured Structures Dealer Bond ($40,000)

Oregon is renowned for its beautiful landscapes, outdoor recreational opportunities, and diverse communities. But beneath its natural beauty lies a web of regulations and requirements that keep the state’s various industries in check. Among these regulations is the Oregon Manufactured Structures Dealer Bond, a financial safeguard that plays a crucial role in the state’s housing and construction sector. In this article, we’ll take an in-depth look at this $40,000 bond, understanding its purpose, significance, and how it impacts manufactured structures dealers in the state of Oregon.

The Purpose of the Oregon Manufactured Structures Dealer Bond

The Purpose of the Oregon Manufactured Structures Dealer Bond

Manufactured Structures Dealer Bond, often simply referred to as a dealer bond, is a financial guarantee required by the Oregon Building Codes Division (BCD). This bond serves as a form of protection for consumers and the state, ensuring that manufactured structures dealers operate ethically and comply with state regulations. The primary purpose of this bond is to safeguard the interests of consumers and mitigate financial losses in case a dealer engages in unethical or fraudulent practices.

Significance of the $40,000 Bond Amount

One of the key elements of the Oregon Manufactured Structures Dealer Bond is its substantial $40,000 bond amount. This amount is not arbitrary but carefully calculated to reflect the potential risks and liabilities associated with the manufactured structures industry. The significance of this bond amount is twofold:

  1. Consumer Protection: The $40,000 bond amount acts as a financial safety net for consumers. If a dealer fails to fulfill their obligations, such as delivering a manufactured structure as agreed upon or not abiding by state laws, consumers can make a claim against the bond to seek compensation for their losses. This ensures that consumers are not left financially vulnerable in case of non-compliance.
  2. Regulatory Compliance: For dealers, the $40,000 bond amount serves as a powerful incentive to comply with state regulations. It underscores the importance of conducting business ethically and within the legal framework. Failure to adhere to the rules and regulations set forth by the BCD can result in a claim against the bond, which may lead to financial consequences for the dealer.


How to Obtain the Oregon Manufactured Structures Dealer Bond

How to Obtain the Oregon Manufactured Structures Dealer Bond

Obtaining the Oregon Manufactured Structures Dealer Bond is a crucial step for anyone wishing to operate as a manufactured structures dealer in the state. Here’s how the process typically works:

  1. Identify a Bond Provider: Dealers must find a reputable surety bond provider licensed to issue bonds in Oregon. These providers specialize in offering various types of bonds and will guide dealers through the application process.
  2. Application and Underwriting: The dealer will need to complete an application for the bond, providing information about their business, financial history, and other relevant details. The surety will also conduct underwriting to assess the dealer’s risk profile.
  3. Bond Premium: The dealer will pay a premium to the surety bond provider. This premium is typically a percentage of the total bond amount, and the rate may vary based on the dealer’s creditworthiness and other factors.
  4. Bond Issuance: Once the application is approved and the premium is paid, the surety will issue the bond. The dealer will receive a copy of the bond to submit to the BCD as part of their licensing process.


The Oregon Manufactured Structures Dealer Bond, with its $40,000 bond amount, plays a vital role in protecting consumers and upholding ethical standards within the manufactured structures industry. It serves as a financial guarantee that ensures dealers abide by state regulations and operate in a manner that safeguards the interests of Oregon’s residents. For individuals seeking to become manufactured structures dealers in Oregon, understanding and complying with the bond requirement is a critical step in establishing a reputable and trustworthy business within the state’s housing and construction sector.


Frequently Asked Questions

Is there any provision for reducing the $40,000 bond amount for manufactured structures dealers who have demonstrated a history of ethical and compliant business practices?

Typically, the bond amount is set at $40,000 and is not subject to reduction based on a dealer’s track record or experience. The bond amount is designed to provide adequate protection for consumers and the state, and it remains constant for all dealers. However, established dealers with a solid history of compliance may benefit from lower bond premium rates, which can result in cost savings over time.

What happens if a claim is made against the bond and the dealer cannot cover the full amount?

If a valid claim is made against the bond, the surety company initially pays the claim to the aggrieved party, up to the bond amount of $40,000. Subsequently, the surety will seek reimbursement from the dealer for the amount paid. If the dealer is unable or unwilling to reimburse the surety, they may face legal action or have their bond revoked, which could result in the suspension or revocation of their dealer license.

Are there any alternative financial instruments that can replace the $40,000 bond?

In most cases, the Oregon Building Codes Division (BCD) mandates the use of the $40,000 surety bond as the primary financial instrument to meet the bonding requirement. While other states may permit alternatives, such as letters of credit or cash deposits, Oregon’s specific requirements generally necessitate the surety bond. However, it’s essential to consult with the BCD or a licensed surety bond provider for any potential exceptions or alternatives to the bond requirement.

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