California Farm Products Processors Law Bond

Know why this bond is required and how you can get one immediately!

What is a California Farm Products Processors Law Bond?

The Secretary of the California Department of Food and Agriculture requires processors who fail to meet the financial requirements to obtain this bond. The processor can either be a license applicant or someone who holds a valid license.

The primary purpose of this bond is to ensure that the processor will pay the producer-creditor for any farm product that the processor took control of for the purpose of manufacturing, selling, reselling, processing, or redelivering the products in any canned, extracted, dried, fermented, frozen, eviscerated, distilled, or other preserved or processed form.

If the processor fails to pay the producer of farm products, the said person will be eligible to recover the amount lost through a bond claim.
In addition, this bond will also be conditioned to obligate the processor to obey the provisions of Chapter 6, Division 20 of the Food and Agricultural Code of the State of California or Processors Law.

This requirement is in pursuance of Section 55523.3 of the said Code.

How much does a California Farm Products Processors Law Bond cost?

The bond cost will depend on the processor’s credit score. The bond premium for those who have excellent credit scores will start at 1% of the bond amount.

The bond amount will be determined by the Secretary of the California Department of Food and Agriculture.

Once you have determined your bond amount, you can find out what your bond premium will be by claiming your FREE SURETY BOND QUOTE HERE!

How can I get a California Farm Products Processors Law Bond?

APPLY FOR THIS BOND HERE! Once we have received your application, we will inform you about the important information or documents that you must submit to move forward to the next step of the bonding process, which is 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’s important to provide us with clear and organized information to prevent any delays.

Once you’ve signed the indemnity agreement, the bond will immediately be issued and sent to you.

How does a California Farm Products Processors Law Bond work?

This bond will provide a path of recourse for the Obligee in the event that the Principal fails to fulfill the obligations. The Obligee is the State of California and to whom the obligation is owed.

The party who must fulfill the obligation is the principal. The principal is the processor named in the bond. The third party – the Surety – will financially back the principal.

In doing so, the immediate financial responsibility will be shouldered by the Surety. When a bond claim is made by the Obligee, it is the duty of the Surety to settle the claim once its validity has been determined.

Ready to start the process? APPLY HERE!

California Farm Products Processors Law Bond

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