Rancho Mirage City Consignment Store Bond
The City of Rancho Mirage requires consignment business establishments to file for a bond in order to secure permits corresponding to their operations and to activate their licenses. These requirements are needed to ensure the compensation of the public should applicants cause any licensing infractions in the course of their business operations.
What is a Consignment Store Permit?
A consignment store permit is mandatory to commence a consignment business. It is required for the businesses’ legal operations and to secure the public from theft, fraud, and any other possible unlawful conduct of the permittees.
The City of Rancho Mirage has their specific rules on when and how you should secure a consignment store permit. You may visit Rancho Mirage City Hall or check their Consignment Store Permit Procedure to know more about the application flow and requirements. You may also check their Municipal Code to know more about laws governing consignment stores in the area.
What is the Rancho Mirage City Consignment Store Bond?
Rancho Mirage City Consignment Store Bond provides a legal contingency for the city, ensuring the applicant compensates the public for possible theft, fraud, damage, or any other unlawful conduct in the course of their business operations. This also serves as a pre-licensing requirement for applicants to secure their consignment store permits.
How does it work?
Applicants must file the consignment store bond with the City of Rancho Mirage. The bond must be covered by a surety bond provider certified by California’s Department of Insurance. The parties in the agreement are the Principal (business applicant), Obligee (City of Rancho Mirage), and Surety/Bond Company or Obligor (surety bond provider or insurance).
The Bond Company will guarantee the compensation (performance bond) of the Obligee should the Principal fail to meet their standards or violate other licensing provisions. The Surety Company will assess the validity of claims, where claims may only amount to the total penal sum agreed upon in the bond form. The Principal shall reimburse all expenses covered by the Surety Company.
The Bond Company is secured through an indemnity agreement as the licensed business is mandated by law for the full reimbursement of the claims, including legal fees and premiums. This agreement shall be made before the execution of the bond and shall ascertain the businesses responsibility over their dealings.
How much does it cost?
The City of Rancho Mirage does not require credit reports for a consignment store bond, but Obligors conduct their own verification as part of their underwriting. This will normally cost around 0.5% of the total bond amount.
Want to know your standing? Visit here and get your surety bond quote today!
How can I apply for this bond?
At Surety Bond Authority, we are dedicated to help you get your bond the fast and easy way. Here is a step-by-step guide to help you get started.
To secure your consignment store bond, be sure to transact with a reputable surety company early. If you are ready to get yours processed today, you can APPLY HERE. Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond.
In the assessment phase, our underwriter will need the following information:
- Nature of your profession or business
- Credit score
- Financial strength
For the speedy processing of your application, ensure you have gathered and provided accurate information upon submission.
Once the assessment is done, we will promptly issue your bond and send it your way. Contact us today and get your bond issued in no time!