Gonzales California License/Permit Bond
A quick guide to one of the most important license/permit requirements in the City of Gonzales!
What is a Gonzales California License/Permit Bond?
This bond is a condition to the issuance of business license or permit in the City of Gonzales in the State of California.
Compliance to the conditions of the permit is one of the reasons why this bond is required. That includes performing the necessary contractual obligations in accordance with the ordinances, statutes, rules, and regulations that governs the specific industry of the person named in the bond.
Furthermore, the purpose of this bond is to repay the City of Gonzales for any damages caused by the licensee or permittee.
How does a Gonzales California License/Permit Bond work?
A Gonzales California License/Permit Bond has three parties:
Principal – the individual or business entity named in the bond
Obligee – the City of Gonzales
Surety – the surety bond company or the surety bond provider
The principal is the party who will obtain the bond. The principal is also the party who is required to perform all the pre-determined conditions stated in the bond. The Obligee is the party who is requiring the bond and who will benefit from a bond claim.
The role of the surety is to assure the obligee that the principal will be capable of fulfilling the obligations covered by the license or permit. The surety will also provide a financial security by backing this bond in case the principal violates the obligations.
When a claim is made against the bond, the surety will evaluate the claim by identifying the ordinance, regulation, and other laws that governs it. The surety will also check the scope of the license or permit in question.
The surety is required to ensure that the obligee will be paid if the claim is valid. After the payment has been settled by the surety, the principal will be asked to reimburse the said payment.
How much does a Gonzales California License/Permit Bond cost?
The bond cost varies. This will depend on the credit score of the principal as well as the total bond amount. The bond amount will be determined by the City of Gonzales.
Bond cost will usually start at 0.5% of the total bond amount for license and permit applicants who have excellent credit scores.
How can I get a Gonzales California License/Permit Bond?
STEP 1: Apply for the bond
You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
We will ask you a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score. An expert underwriter will take a thorough look on all those.
STEP 3: Bond execution
Once the underwriter is done with the prequalification process, we will immediately issue the bond and send it to you!
Ready to apply? START HERE!