California Auction Company Bond
Starting an auction company soon? You need to apply now for this important business requirement!
What is a California Auction Company Bond?
Before you can conduct business in the State of California as an auction company, you need to obtain this bond and submit it to the Secretary of State.
This bond is for the benefit of every person that will be harmed by the potential misconduct/s of the auction company such as the following:
- Unlawful acts or omissions
- Failure to provide the services that are within the scope of its duties.
In addition, the auction company is required to obey every ordinance, rules, regulations, or statute that pertains to auction companies within the State of California.
This bond requirement is in line with Section 1812.600 of the California Civil Code.
How does a California Auction Company Bond work?
The primary purpose of the bond is to protect the Obligee (State of California) from the default of the Principal (auction company). The Obligee needs a guarantor to ensure that the Principal will do good on its promise, and that is the Surety.
Together, the Surety and the Principal will be indebted to the Obligee if a default occurs. When it happens, the Obligee will file a claim against the bond. The claim can only be up to the maximum value of the bond. The Principal must settle the claim first. If the Principal fails to settle the claim, the Surety will step in.
The Surety will not pay the Obligee immediately. The Surety will conduct an investigation first to check if the violation committed by the Principal is part of the bond’s conditions and if the claim is valid. Once the claim has been verified, the Surety will pay the Obligee. After the payment has been settled, the Surety will seek reimbursement from the Principal.
How much does a California Auction Company Bond cost?
The bond cost will depend on the auction company’s credit score. Auction companies that have good credit scores will be eligible to pay as little as 1% of the bond amount.
The bond amount is $20,000.
Know what you need to pay right now! GET YOUR FREE QUOTE HERE today!
How can I get a California Auction Company Bond?
Just follow these easy steps!
- You must first apply for this bond. If you’re ready to do that now, you may APPLY HERE!
- After we’ve received your application, we’ll ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three in order to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Your surety bond will be issued and sent to you!
Ready to apply for your surety bond? START HERE!