California Discount Buying Organization Bond
Know the importance of this surety bond and how to easily get one!
What is a California Discount Buying Organization Bond?
It’s a financial security required of every discount buying organization prior to starting the business. This bond will ensure the compliance of the discount buying organization to Title 2.6 of the California Civil Code.
As part of the bond condition, the clients of the discount buying organization will be compensated if the discount buying organization fails to provide its members the ability to purchase goods or services at discount prices.
This bond – in pursuance of Section 1812.103 of the California Civil Code – shall be submitted to the California Secretary of State for the benefit of any person who will be harmed by the misconduct of the discount buying organization.
How does a California Discount Buying Organization Bond work?
The discount buying organization will be named as the bond’s Principal. The Principal’s duty is to fulfill its contractual duties to its clients in accordance with the relevant laws of the State. The Surety’s (surety bond provider) role is to provide the necessary guarantee regarding the fulfillment of the Principal’s duties.
Both the Principal and the Surety will be indebted to an Obligee (People of the State of California) if the former commits a misconduct. If a client of the Principal files a bond claim stating that the Principal did not provide him or her the necessary services stated in the contract, the Principal must first settle the claim or dispute before the Surety steps in. The Surety will pay the claim if the Principal cannot do so. Once the claim has been settled by the Surety, the Principal must repay the full amount that has been paid by the Surety.
How much does a California Discount Buying Organization Bond cost?
The bond cost will start at 1% of the bond amount for discount buying organizations who have excellent credit scores.
The bond amount is $20,000.
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a California Discount Buying Organization Bond?
You can obtain this bond through our fast and easy application process. Here’s a step-by-step guide on how to get this surety bond:
APPLY FOR THIS SURETY BOND! Once we have received your application, we will inform you about the important information or documents that you must submit in order to move forward to the next step of the bonding process: underwriting.
During the underwriting process, our expert underwriter will assess the following:
- Your financial capability
- Your business or job performance history
- Your credit score
It is important to provide us with a clear and organized information to prevent any delays. Our expert underwriter will check everything that you have submitted. Once you’ve signed the indemnity agreement, the bond will be issued and sent to you!
Ready to apply? START HERE!