What is an Illinois Timber Buyer’s Bond?
See why this surety bond matters to timber buyers in Illinois!
Licensed timber buyers are required to procure a surety bond as mandated by the Timber Buyers Licensing Act. A surety bond must be maintained during the duration of the license as well.
The licensed timber buyer must submit the surety bond to the Department of Natural Resources of the State of Illinois before purchasing timbers from timber growers to resell or sawing timbers into lumbers.
Compliance of the Principal or the licensed timber buyer to the applicable state laws and rules is one of the reasons for the surety bond.
No action will be taken against the surety bond if the timber buyer will promptly pay the timber growers or legally harvest the timbers.
If the opposite occurs, the injured party will have the right to recover losses by filing a bond claim.
What is the Timber Buyer’s Bond amount?
$500 – minimum bond amount
$10,000 – maximum bond amount
A timber buyer who paid $5,000 to a timber grower during the previous year will furnish the minimum bond amount of $500.
The bond amount would have an additional $100 per $1,000 if the timber buyer paid a timber grower more than $5,000.
If you have determined your bond amount, you may check your bond premium by getting your FREE QUOTE HERE from us!
How can I get a Timber Buyer’s Bond?
Here’s a step-by-step bonding process that we have made easier so that you can get your bond in no time:
You must first apply for this type of surety bond. If you are ready to do this now, you may APPLY HERE!
Our expert surety bond agent will guide you through the entire process – from the time you have applied until the bond is issued to you.
Next, you will be asked to submit a few vital information that our underwriter will need to assess the following:
- Your job or business history
- Your credit score
To avoid any delays, make sure that you have gathered the right information needed before submitting.
Once the underwriting process is done, we will immediately issue your bond and send it to you right away!
What are the surety bond conditions?
- The Surety who will issue the bond should be Illinois-recognized
- The surety bond should be made payable to the Department of Natural Resources of the State of Illinois
- The licensed timber buyer must obey the provisions of the Timber Buyers Licensing Act as well as the rules and regulations of the Department of Natural Resources of the State of Illinois
- If the licensed timber buyer commits a violation, the aggrieved party will be eligible to file a claim against the surety bond up to its penal sum