Los Angeles California Parking Lot License Bond
Know the importance of this surety bond and how to easily apply for one!
What is a Los Angeles California Parking Lot License Bond?
Those who are applying for a Master Automobile Parking Lot Permit are required to obtain this surety bond. This must be submitted to the Board of Police Commissioners before the said person can conduct, manage, or operate an automobile parking within the City of Los Angeles.
The purpose of this surety bond is to ensure the compliance of the permittee to the provisions of Section 103.202 of the Los Angeles Municipal Code such as the following:
- The permittee will ensure that the vehicles parked will not be damaged.
- The permittee will ensure that the vehicles will be secured against theft or any losses due to unlawful taking.
How does a Los Angeles California Parking Lot License Bond work?
This bond will serve as a financial guarantee obtained by the permit applicant for the City of Los Angeles. The permit applicant is known as the Principal of the bond and the City of Los Angeles will be the Obligee. The Principal is required to fulfill all the obligations required by the Obligee.
The third party, the Surety, will serve as the financial backer of the Principal. The Surety will assure the Obligee that the Principal will perform the obligations in a lawful manner. In addition, the Surety will provide the necessary compensation to the Obligee if a bonded violation is committed by the Obligee.
For example, if something has been stolen from one of the vehicles in the parking lot operated by the Principal, the Obligee can file a bond claim. The Surety will first validate the claim before paying the Obligee. If the claim is valid, the Surety will settle the claim on behalf of the Principal. Once the payment is made, the Principal will have to reimburse the Surety the full amount paid.
How much does a Los Angeles California Parking Lot License Bond cost?
The bond cost will start at 1.5% of the bond amount for permit applicants that have good credit scores. It will be higher for permit applicants with low credit scores.
The bond amount will be $10,000 per parking lot. The permit applicant has an option to file a blanket bond in the amount of $50,000. A blanket bond will cover all parking lots owned and operated by the same permit applicant.
How can I get a Los Angeles California Parking Lot License Bond?
We’ve made it easier for you! Just follow the simple steps below!
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 underwriter will carefully evaluate all those.
STEP 3: Bond execution
Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!