Florida HSMV Form 86058 Mobile Home Dealer Letter of Credit

Florida HSMV Form 86058 Mobile Home Dealer Letter of Credit – If you plan to operate as a licensed mobile home dealer in Florida, the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) requires financial security to protect consumers. One accepted option is an irrevocable letter of credit submitted on HSMV Form 86058. This official form serves as an alternative to a traditional surety bond and helps satisfy the bonding requirements under Florida law.

This comprehensive guide explains everything U.S. dealers need to know about Form 86058, including its purpose, required amounts, completion steps, and how it fits into the overall mobile home dealer licensing process.

What Is Florida HSMV Form 86058?

Florida HSMV Form 86058 is the official “Irrevocable Letter of Credit – Mobile Home Dealer” document issued by the Florida Department of Highway Safety and Motor Vehicles. It is used when a mobile home dealer chooses to provide an irrevocable letter of credit (LOC) from a qualified bank instead of purchasing a surety bond.

The form is revised as of August 2011 (HSMV 86058 Rev. 08/11) and remains the current version accepted by FLHSMV. It must be completed by both the issuing bank and the dealer (principal).

You can download the official form directly from the Florida Department of Highway Safety and Motor Vehicles:

Download Florida HSMV Form 86058 (PDF)

Legal Basis and Purpose of the Irrevocable Letter of Credit

Under Florida Statutes § 320.77(16), every mobile home dealer must deliver a surety bond, cash bond, or irrevocable letter of credit before a license is issued or renewed. The security protects any person in a retail or wholesale transaction who suffers a loss because the dealer fails to comply with a written contract or violates provisions of Chapter 319 or Chapter 320 of the Florida Statutes.

The irrevocable letter of credit on Form 86058 guarantees that the issuing bank will honor valid claims up to the stated limit. Unlike a surety bond, which is underwritten by an insurance company, an LOC is a direct obligation of the bank and typically requires the dealer to maintain collateral equal to the full face amount.

Required Letter of Credit Amounts

The amount of the irrevocable letter of credit depends on the number of locations the dealer operates:

  • $25,000 – Primary location plus up to four supplemental locations
  • $50,000 – Primary location plus more than four supplemental locations

These amounts match the surety bond requirements found on the companion form HSMV 86018. The aggregate liability of the bank in any one license year cannot exceed the face amount of the letter of credit.

Who Must Use Form 86058?

Form 86058 is specifically for applicants and licensees seeking or renewing a Mobile Home Dealer (DH) or Mobile Home Broker (BH) license in Florida. It is not used for motor vehicle dealers (who use Form 86057) or mobile home manufacturers (who use Form 86059).

Dealers who also sell recreational vehicles may still use the mobile home letter of credit when the mobile home license covers both activities under certain dual-license rules.

Key Requirements for the Issuing Bank

Florida law and FLHSMV guidelines require the following:

  • The letter of credit must be issued by a bank authorized to do business in the State of Florida.
  • The bank must assign a unique irrevocable letter of credit number.
  • The form must include the bank’s full name, address, and the signature and title of an authorized bank officer.
  • A bank seal (or official rubber stamp if no seal exists) must be affixed.
  • The letter of credit must be issued in the exact legal name of the dealership, including any fictitious (DBA) names registered with the Florida Division of Corporations.

How to Complete Florida HSMV Form 86058?

The form is relatively short but must be filled out accurately. Key sections include:

  1. Irrevocable Letter of Credit Number – Assigned by the bank.
  2. Issuing Bank Information – Full legal name of the bank authorized to do business in Florida.
  3. Principal (Dealer) Information – Exact legal name of the mobile home dealer as it appears on the license application.
  4. Amount Selection – Check the appropriate box for $25,000 or $50,000 based on the number of locations.
  5. Effective Date and License Term – The letter of credit must cover the full licensing period (typically October 1 through September 30).
  6. Signatures – Signature of the bank officer, signature of the principal/owner, and printed names and titles.
  7. Addresses – Complete physical addresses for both the dealership and the bank.
  8. Bank Seal – Affixed by the issuing bank.

A new letter of credit or a proper continuation certificate must be delivered to FLHSMV at the beginning of each license period. Any material change requires a copy to be submitted within 10 calendar days.

Letter of Credit vs. Surety Bond: Which Should You Choose?

Many dealers prefer a surety bond (Form HSMV 86018) because the annual premium is typically only 1–3% of the bond amount and does not tie up significant capital. An irrevocable letter of credit, by contrast, usually requires the dealer to pledge cash or other collateral equal to the full $25,000 or $50,000 face value.

An LOC may still be attractive for dealers who:

  • Have strong existing banking relationships
  • Prefer to avoid surety company underwriting and credit checks
  • Already maintain substantial deposits with a Florida bank

Both options provide the same level of consumer protection required by Florida law.

Where to Submit Form 86058

Submit the original completed Form 86058 along with your dealer license application (HSMV 86056) or renewal application to the FLHSMV regional office responsible for your dealership location. You can locate the correct office through the official FLHSMV locations page.

Additional required documents typically include:

  • Completed Application for License as a Motor Vehicle, Mobile Home, or Recreational Vehicle Dealer (HSMV 86056)
  • Proof of registration with the Florida Division of Corporations (Sunbiz)
  • Federal Employer Identification Number (FEIN)
  • Evidence of required garage liability insurance (if applicable)
  • Fingerprint cards or electronic fingerprint results
  • Applicable license fees

Related Florida Dealer Forms

Important Tips for Florida Mobile Home Dealers

  • Always use the exact legal business name registered with Sunbiz, including all DBA names.
  • Ensure the letter of credit effective dates align with the dealer license period (October 1 – September 30 for most mobile home dealers).
  • Keep a copy of the fully executed letter of credit for your records.
  • Notify FLHSMV promptly of any changes in bank information, dealership ownership, or location structure.
  • Consult the official FLHSMV Dealer Licensing page and the Dealer Handbook for the most current requirements.

Conclusion

Florida HSMV Form 86058 provides mobile home dealers with a flexible alternative to a traditional surety bond while fully satisfying state consumer-protection requirements. By working with a Florida-authorized bank and carefully completing the form, dealers can meet the financial responsibility standards set forth in Florida Statutes § 320.77 and move forward with licensing or renewal.

For the most accurate and up-to-date information, always refer to official FLHSMV resources and consider consulting a qualified Florida attorney or licensing professional familiar with dealer regulations.
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