California Check Sellers, Bill Payers, and Proraters Bond
Secure your license through this bond!
What is a California Check Sellers, Bill Payers, and Proraters Bond?
Before the license applicant can engage in the following businesses, he or she must obtain a license first:
- Receive money for the purpose of paying bills, invoices or accounts of an obligor
- Sell checks
One of the most important requirements for the said license is this bond. This bond will ensure that the license applicant will conform to the Check Sellers, Bill Payers and Proraters Law when performing his or her duties. This bond will also ensure that the license applicant will abide by the rules set forth by the Commissioner of Business Oversight of the State of California.
If the licensee commits any violations against the relevant provisions, rules, or regulations, any person who will suffer damages due to the violation will be eligible to file a bond claim.
This bond is in pursuance of Section 12206 of the California Financial Code.
How does a California Check Sellers, Bill Payers, and Proraters Bond work?
This bond will serve as a guarantee provided by a third party (Surety) to a second party (Obligee) regarding the first party’s compliance to the relevant laws, rules, and regulations.
If the first party commits a bonded violation, the Obligee will be eligible to file a claim against the bond. Some of the violations include the following:
- The licensee did not observe any reasonable precautions against theft, burglary, holdup, or alteration of checks, drafts or money orders.
- The funds received by the licensee was not deposited into the trust account.
- The licensee suspended payments to its trust obligations.
The Principal must settle the bonded claim first. If the Principal fails to settle the claim, the Surety will do it for the Principal. After the claim has been settled, the Principal must indemnify the Surety under the terms of the bond agreement.
How much does a California Check Sellers, Bill Payers, and Proraters Bond cost?
This will depend on the license applicant’s credit score.
License applicants who have excellent credit scores will be eligible to obtain a low bond premium. Bond premium starts at 1% of the bond amount.
$25,000.00 – Bill payers and proraters
$500,000.00 – Check sellers
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a California Check Sellers, Bill Payers, and Proraters Bond?
APPLY FOR THIS BOND – You may apply for this bond HERE!
UNDERWRITING – Once we’ve received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
To avoid any delay, make sure that your requirements are complete prior to submitting them.
ISSUANCE – As soon as the underwriter has completed the necessary in-depth check, you will be asked to sign an indemnity agreement. After that, the bond will be issued sent to you.
Need to get your surety bond ASAP? APPLY NOW!