AFSB 153 EXAM PREP GUIDE 2026
QUESTIONS AND ANSWERS GRADED A
PLUS
◉ Fuel Tax Bonds - Gasoline Refiners, Pipelines, Railroads, and
Airlines
Answer: Principal = Owner or operator of the refinery, pipeline,
railroad, or airline
Obligee = Federal government
Guarantee = Will comply with laws that relate to fuel distribution or
manufacture, including the collection and remittance of fuel tax,
interest, fines, and penalties.
◉ Fuel Tax Bonds - Fuel Wholesalers and Distributers
Answer: Principal = Wholesaler, distributor, manufacturer, or
importer
Obligee = State
Guarantee = Will comply with laws that relate to fuel distribution or
manufacture, including the collection and remittance of fuel tax,
interest, fines, and penalties.
◉ Motor Carriers
Answer: Principal = Trucking firm
,Obligee = Federal government
Guarantee = Will pay use tax based on the volume of fuel consumed.
◉ Mileage Tax Bonds
Answer: Principal = Owner or operator of the trucking or
transportation firm
Obligee = State or municipality
Guarantee = Will pay mileage tax and comply with reporting
requirements.
◉ Miscellaneous Tax Bonds
Answer: Principal = Retailer
Obligee = State
Guarantee = Will comply with the state laws, including the
collection and remittance of miscellaneous taxes.
◉ Sales, Use, and Consumer Tax Bonds
Answer: Principal = Retailer or service provider
Obligee = State or municipality
Guarantee = Will collect and remit sales, use, or consumer tax as
required by law.
◉ Warehouse and Grain Elevator Bonds
,Answer: Principal = Warehouse owner
Obligee = Federal government
Guarantee = Will comply with all federal laws that govern the
warehouse industry.
◉ Grain Dealers Bonds
Answer: Principal = Dealer
Obligee = Federal government or state
Guarantee = The dealer will pay the producer for grain sold.
◉ Motor Vehicle Dealer Bonds
Answer: Principal = Motor vehicle dealer
Obligee = State or municipality
Guarantee = Will deliver a clear title to the buyer and will not
engage in fraudulent acts, such as turning back the odometer on
vehicles sold.
◉ Mobile Home Dealers - Warranty Coverage Bonds
Answer: Principal = Dealer who sells the warranty with the home
Obligee = State
Guarantee = The dealer and manufacturer will comply with all laws
that govern the manufactured housing industry, including
, compliance with building codes, warranty obligations, and payment
of taxes.
◉ Defective Title Bonds
Answer: Principal = Vehicle owner
Obligee = State
Guarantee = Hold the state harmless and to protect the buyers
against unsatisfied liens or debts against the vehicles and against
purchasing previously stolen vehicles.
◉ Self-Insurers and Financial Responsibility Bonds
Answer: Principal = Motor vehicle or fleet owner
Obligee = State
Guarantee = Has sufficient cash or investments available to pay
third-party liability claims, up to the state's minimum liability limits.
◉ Public Official Bonds
Answer: - Principal = Public official
- Obligee = State, local, or federal government
- Guarantee = Elected or appointed government officials will act
honestly or perform their duties faithfully.
◉ Attachment Bonds
QUESTIONS AND ANSWERS GRADED A
PLUS
◉ Fuel Tax Bonds - Gasoline Refiners, Pipelines, Railroads, and
Airlines
Answer: Principal = Owner or operator of the refinery, pipeline,
railroad, or airline
Obligee = Federal government
Guarantee = Will comply with laws that relate to fuel distribution or
manufacture, including the collection and remittance of fuel tax,
interest, fines, and penalties.
◉ Fuel Tax Bonds - Fuel Wholesalers and Distributers
Answer: Principal = Wholesaler, distributor, manufacturer, or
importer
Obligee = State
Guarantee = Will comply with laws that relate to fuel distribution or
manufacture, including the collection and remittance of fuel tax,
interest, fines, and penalties.
◉ Motor Carriers
Answer: Principal = Trucking firm
,Obligee = Federal government
Guarantee = Will pay use tax based on the volume of fuel consumed.
◉ Mileage Tax Bonds
Answer: Principal = Owner or operator of the trucking or
transportation firm
Obligee = State or municipality
Guarantee = Will pay mileage tax and comply with reporting
requirements.
◉ Miscellaneous Tax Bonds
Answer: Principal = Retailer
Obligee = State
Guarantee = Will comply with the state laws, including the
collection and remittance of miscellaneous taxes.
◉ Sales, Use, and Consumer Tax Bonds
Answer: Principal = Retailer or service provider
Obligee = State or municipality
Guarantee = Will collect and remit sales, use, or consumer tax as
required by law.
◉ Warehouse and Grain Elevator Bonds
,Answer: Principal = Warehouse owner
Obligee = Federal government
Guarantee = Will comply with all federal laws that govern the
warehouse industry.
◉ Grain Dealers Bonds
Answer: Principal = Dealer
Obligee = Federal government or state
Guarantee = The dealer will pay the producer for grain sold.
◉ Motor Vehicle Dealer Bonds
Answer: Principal = Motor vehicle dealer
Obligee = State or municipality
Guarantee = Will deliver a clear title to the buyer and will not
engage in fraudulent acts, such as turning back the odometer on
vehicles sold.
◉ Mobile Home Dealers - Warranty Coverage Bonds
Answer: Principal = Dealer who sells the warranty with the home
Obligee = State
Guarantee = The dealer and manufacturer will comply with all laws
that govern the manufactured housing industry, including
, compliance with building codes, warranty obligations, and payment
of taxes.
◉ Defective Title Bonds
Answer: Principal = Vehicle owner
Obligee = State
Guarantee = Hold the state harmless and to protect the buyers
against unsatisfied liens or debts against the vehicles and against
purchasing previously stolen vehicles.
◉ Self-Insurers and Financial Responsibility Bonds
Answer: Principal = Motor vehicle or fleet owner
Obligee = State
Guarantee = Has sufficient cash or investments available to pay
third-party liability claims, up to the state's minimum liability limits.
◉ Public Official Bonds
Answer: - Principal = Public official
- Obligee = State, local, or federal government
- Guarantee = Elected or appointed government officials will act
honestly or perform their duties faithfully.
◉ Attachment Bonds
