California Waste Tire Facility Bond
Know why this bond is needed and how to apply for one!
What is a California Waste Tire Facility Bond?
This bond will serve as financial proof that the waste tire facility applying for a permit will have enough financial resources to properly conduct the operation.
The purpose of this bond is to ensure that the waste tire facility will faithfully perform the closure of each major waste tire facility in accordance with the closure plan and other requirements of the permit.
The California Integrated Waste Management Board can recover the amount lost by filing a claim against this bond if the waste tire facility violates any of its obligations.
This requirement is in pursuance of Title 14, California Code of Regulations, Division 7, Chapter 6, Article 9, and of Chapter 2, Part 2 of the California Code of Civil Procedure.
How much does a California Waste Tire Facility Bond cost?
The bond premium will typically range from 2% up to 7.5% of the bond amount, depending on the waste tire facility’s credit score.
The bond amount will be determined by the California Integrated Waste Management Board. It will be based on the closure amounts of the permit applicant.
Those with low credit scores are still eligible to apply for this bond. Give us a call to know more.
You may also get your FREE SURETY BOND QUOTE HERE once you have determined your bond amount.
How can I get a California Waste Tire Facility Bond?
Just follow these simple steps on how to get this bond below:
STEP 1: APPLY FOR THIS BOND HERE!
STEP 2: Provide the required documents
Your application will immediately be processed once we have received it. We will contact you if we need further information or if you need to submit documents needed for the prequalification process. The following will be checked during the prequalification process:
- Your financial capability
- Your business or job performance history
- Your credit score
STEP 3: Receive your bond
Your surety bond will be issued and sent to you after the indemnity agreement is signed.
How does a California Waste Tire Facility Bond work?
This bond will provide a path of recourse for the obligee (California Integrated Waste Management Board) in case the principal commits misconduct such as the following:
- Fails to perform closure in accordance with the closure plan and other permit requirements
- Fails to put the closure amount guaranteed for the major waste tire facility into the depository trust fund
- Fails to establish a depository trust fund
The principal is the waste tire facility. The third party – the surety – will financially support 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. The principal must repay the surety after the claim has been settled.
Secure your permit! Apply for this bond HERE!