California Wholesaler or Nonresident Wholesaler Bond ($25,000)
An important financial tool for your business!
What is a California Wholesaler or Nonresident Wholesaler Bond ($25,000)?
It is a written legal agreement that will help ensure the compliance of a wholesaler or nonresident wholesaler to the conditions of the wholesaler license the said person is applying for.
The said conditions includes, but is not limited to, performing services in accordance with the provisions of Division 2, Chapter 9 of the California Business and Professions Code and of Chapter 2, Title 14, Part 2 of the California Code of Civil Procedure.
This bond must be submitted to the California State Board of Pharmacy before a wholesaler can distribute, broker, or transact the sale or return of dangerous drugs or dangerous devices (also known as “legends”) in California.
A wholesaler company can submit a $25,000-bond if it can verify—by providing a copy of the company’s tax return for the previous year—that its annual sales is less than $10,000,000.
This requirement is in pursuance of Sections 4162 and/or 4162.5 of the California Business and Professions Code.
How much does a California Wholesaler or Nonresident Wholesaler Bond ($25,000) cost?
The bond premium will depend on the wholesaler license applicant’s credit score. Those who have excellent credit scores will be eligible to pay as low as 1% of the bond amount.
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 Wholesaler or Nonresident Wholesaler Bond ($25,000)?
Here’s a step-by-step guide on how to get this surety bond:
Submit a surety bond application to us. Once we have received your application, we will inform you about the important information or documents that you must submit in order to move forward to the next step of the bonding process, which is underwriting.
During the underwriting process, our expert underwriter will assess the following:
- Your financial capability
- Your business or job performance history
- Your credit score
It is important to provide us with a clear and organized information to prevent any delays. Our expert underwriter will check everything that you have submitted, and once that is finished, we will immediately send the bond to you!
How does a California Wholesaler or Nonresident Wholesaler Bond ($25,000) work?
A surety bond is a three-party agreement.
Principal – Wholesaler license applicant
Obligee – People of the State of California and the Pharmacy Board Contingent Fund
Surety – Surety bond provider
This bond will protect the obligee against losses if the principal violates any of his or her contractual obligations.
One of those violations is if the wholesaler sells or distributes dangerous drugs or dangerous devices directly to patients (unless the wholesaler is delivering dialysis drugs and devices to home dialysis patients).
The bond will remain void if the Principal fulfills all the required duties without any violation. The Surety will first check the validity of a claim if one is made against the bond. If it’s valid, the Surety will pay the Obligee. The Principal must, however, reimburse the Surety after.