Florida HSMV Form 86059 Mobile Home Letter of Credit – Mobile home manufacturers seeking to operate or sell products in Florida must meet strict licensing requirements enforced by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). One key financial assurance option is the Florida HSMV Form 86059, officially titled the Florida Mobile Home Manufacturer Irrevocable Letter of Credit. This form allows manufacturers to provide a $50,000 irrevocable letter of credit in place of a traditional surety bond, protecting retail customers under Florida law.
This comprehensive guide explains the purpose of Form 86059, who needs it, legal requirements, how to complete and submit it, and where to download the official document. All information is drawn from official FLHSMV resources and Florida Statutes.
What Is Florida HSMV Form 86059?
Form HSMV 86059 is the official document used by mobile home manufacturers to establish an irrevocable letter of credit with a financial institution authorized to do business in Florida. The letter of credit serves as financial security for the manufacturer’s license.
According to the form itself (revised August 2011 and still in current use), the bank issuing the letter agrees to honor demands for payment by any person who suffers a loss arising from the manufacturer’s noncompliance with code standards, failure to provide warranty service, or violation of provisions under Florida Statutes § 320.8225. The aggregate liability of the bank is limited to $50,000 in any one year.
The form is addressed to the Florida Department of Highway Safety and Motor Vehicles at 2900 Apalachee Parkway, Room A312, Mailstop #65, Tallahassee, Florida 32399-0500.
Download the official Florida HSMV Form 86059 (PDF) directly from the FLHSMV website.
Legal Basis: Florida Statutes § 320.8225
Florida law requires mobile home manufacturers to provide financial assurance before receiving or renewing a license. Under Florida Statutes § 320.8225(5)(a), applicants or licensees must submit a surety bond, cash bond, or letter of credit from a financial institution in the amount of $50,000.
Key statutory points include:
- The assurance protects any retail customer who suffers a loss from noncompliance with code standards or failure to honor warranty service.
- Only one bond, cash bond, or letter of credit is required per manufacturer, regardless of the number of factory locations.
- The department may disapprove any letter of credit that does not provide adequate assurance.
- Licensees must deliver a copy of any renewed, continued, changed, or new letter of credit to the department within 10 calendar days.
This requirement applies to manufacturers with facilities in Florida or out-of-state plants that produce mobile homes ultimately offered for sale in the state.
Who Needs to File Form 86059?
Any person or company engaging in the business of a mobile home manufacturer in Florida, or manufacturing mobile homes out of state for sale in Florida, must obtain a license from FLHSMV. Form 86059 is the approved method for submitting an irrevocable letter of credit as the required financial assurance.
According to official FLHSMV frequently asked questions:
- A mobile home manufacturer can submit an irrevocable letter of credit issued by a financial institution in lieu of a surety bond.
- Applicants must complete Form 86059.
- The amount is $50,000.
- Only one letter of credit is required per manufacturer, even with multiple factory locations.
The alternative is Form HSMV 86050 (Surety Bond for Mobile Home Manufacturers). Manufacturers choose the option that best fits their financial arrangements with a bank or surety company.
Licensing is required for each plant location, and the application is submitted on Form HSMV 84256.
Key Requirements for the Irrevocable Letter of Credit
To be accepted by FLHSMV, the letter of credit documented on Form 86059 must meet several conditions:
- Issued by a bank authorized to do business in the State of Florida.
- Amount: $50,000 (aggregate liability limit per year).
- Payable to the Department of Highway Safety and Motor Vehicles for the benefit of retail customers suffering qualifying losses.
- Effective date and license term ending date must be specified.
- May be continued annually by certificate in support of subsequent licenses.
- Signed by a bank officer and the principal (manufacturer), with bank seal affixed.
The licensing period for mobile home manufacturers runs from October 1 through September 30. Initial and renewal applications must include current financial assurance covering the applicable period.
How to Complete Florida HSMV Form 86059?
The form is relatively straightforward. Manufacturers should work with their bank to ensure accurate completion. Required information typically includes:
- Irrevocable Letter of Credit Number
- Name of the issuing bank
- Name of the Principal (the mobile home manufacturer)
- Effective date of the letter of credit
- License term ending date
- Name of manufacturer
- Signature of bank officer and title
- Signature of principal
- Typed or printed name of bank officer
- Manufacturer’s full address
- Bank’s full address
- Bank seal
Both the bank officer and the manufacturer’s authorized representative must sign the form. The completed original letter of credit on Form 86059 is submitted with the license application or renewal.
Submission and Related Licensing Documents
Form 86059 is submitted as part of the overall mobile home manufacturer licensing package. Key related documents and requirements include:
- Form HSMV 84256 – Application for license as a mobile home manufacturer (includes checklist).
- Current financial statement.
- Copy of the product warranty.
- List of authorized Florida dealers.
- License fee (initial application $300 for the first year; additional options for two-year periods exist under statute).
- Articles of incorporation or equivalent organizational documents.
- Proof of registration with the Florida Division of Corporations where applicable.
Renewal applications use Form HSMV 86218. For the most current forms and checklists, visit the official FLHSMV Forms and Resources page for manufacturers.
Benefits of Using an Irrevocable Letter of Credit
Many manufacturers prefer a letter of credit over a surety bond for several reasons:
- It may be easier or more cost-effective to arrange with an existing banking relationship.
- It provides the same $50,000 protection required by law.
- It can often be continued year to year with a simple certificate.
- It satisfies the statutory assurance requirement without involving a third-party surety company.
However, the bank will typically require the manufacturer to maintain sufficient collateral or creditworthiness to support the letter of credit.
Important Reminders and Best Practices
Manufacturers should note the following:
- The letter of credit must remain in force for the entire license period.
- Any material change, renewal, or cancellation must be reported to FLHSMV promptly (within 10 days for renewals or changes).
- Failure to maintain the required assurance can result in denial, suspension, or revocation of the manufacturer license.
- Always use the official Form 86059 from the FLHSMV website rather than third-party versions to ensure compliance.
- Consult the bank’s legal or commercial letter-of-credit department early in the licensing process.
For official guidance, review the Mobile Home Manufacturers Frequently Asked Questions on the FLHSMV website.
Download Florida HSMV Form 86059
The official, current version of the form is available free of charge from the Florida Department of Highway Safety and Motor Vehicles:
Always verify that you are using the latest version directly from flhsmv.gov before submission.
Conclusion
Florida HSMV Form 86059 provides mobile home manufacturers with a flexible and compliant way to meet the $50,000 financial assurance requirement under Florida Statutes § 320.8225. By properly completing and submitting this irrevocable letter of credit form along with the full licensing application package, manufacturers can demonstrate their commitment to protecting Florida consumers and operating lawfully in the state.
For the most accurate and up-to-date information, manufacturers should contact the FLHSMV Bureau of Dealer Services or consult the official department website. Professional legal or banking advice is recommended when arranging letters of credit for licensing purposes.