California Nonprofit Community Service Organization Bond
A financial guarantee with low bond premium! Find out how to easily apply!
What is a California Nonprofit Community Service Organization Bond?
Those who are applying for notice and written consent to the Commissioner of Corporations of the State of California to act as a nonprofit community service organization are required to furnish this bond.
The purpose of this bond is to ensure that the applicant will faithfully and honestly comply with the provisions of Section 12104 of the California Financial Code. Some of the provisions are as follows:
- Deposit the money received from debtors in a federally insured state or federal bank, savings bank, savings and loan association, or credit union. The monies will be used for administering a debt management plan or debt settlement plan only.
- Provides consumer credit education.
- Provides counseling on consumer credit problems and family budgets.
- Arrange or administer debt management plans.
- Arrange or administer debt settlement plans.
How much does a California Nonprofit Community Service Organization Bond cost?
The bond premium will start at 1% of the bond amount for those who have excellent credit scores. The bond amount is $25,000.
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a California Nonprofit Community Service Organization Bond?
APPLY FOR THIS BOND
If you are ready to do this now, you may APPLY HERE!
One of our expert surety bond agents will guide you through the entire process – from the time you have applied until the bond is issued to you.
UNDERWRITING
Next, you will be asked to submit a few important information that our underwriter requires to assess the following:
- Your job or business history
- Your credit score
- Your financial strength
BOND ISSUANCE
After the indemnity agreement is signed, the bond will be issued and sent to you!
How does a California Nonprofit Community Service Organization Bond work?
This bond is composed of 3 parties:
Principal – Nonprofit Community Service Organization
Obligee – State of California
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 beneficiary of the bond. The role of the surety is to assure the obligee that the principal will be capable of fulfilling the obligations covered by the license. The surety will also provide financial security by extending its credit to the principal 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 govern 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.
