(a) As an alternative to the procedure provided by § 501.052, the person may obtain a title by filing a bond with the department if the vehicle is in the possession of the applicant and:
(1) there is no security interest on the vehicle;
(2) any lien on the vehicle is at least 10 years old; or
(3) the person provides a release of all liens with bond.
(b) The bond must be:
(1) in the manner prescribed by the department;
(2) executed by the applicant;
(3) issued by a person authorized to conduct a surety business in this state;
(4) in an amount equal to one and one-half times the value of the vehicle as determined by the department, which may set an appraisal system by rule if it is unable to determine that value; and
(5) conditioned to indemnify all prior owners and lienholders and all subsequent purchasers of the vehicle or persons who acquire a security interest in the vehicle, and their successors in interest, against any expense, loss, or damage, including reasonable attorney’s fees, occurring because of the issuance of the title for the vehicle or for a defect in or undisclosed security interest on the right, title, or interest of the applicant to the vehicle.

(c) An interested person has a right of action to recover on the bond for a breach of the bond’s condition. The aggregate liability of the surety to all persons may not exceed the amount of the bond.
(d) A bond under this section expires on the third anniversary of the date the bond became effective.
(e) The board by rule may establish a fee to cover the cost of administering this section.
(f) A person may not obtain a title under this section for a salvage motor vehicle or a nonrepairable motor vehicle, as defined by § 501.091.