What is an Iowa Class E Liquor License Bond?
Applicants for Class E Liquor License are obligated by the Alcoholic Beverages Division of the Iowa Department of Commerce to submit a surety bond along with their application.
This requirement complies with Section 123 of the Iowa Code. The surety bond will serve as a guarantee that the licensee will pay the amount owed to the Alcoholic Beverages Division on time and in full.
A Class E Liquor License is a liquor control license that will permit the license holder to sell and deliver alcoholic liquor in its original and sealed container to the consumers.
What is the bond amount?
The minimum bond amount is $5,000, and the maximum bond amount is $15,000.
The bond amount will be determined by the sliding scale set forth by the Alcoholic Beverages Division.
Those who have excellent credit scores may be eligible to pay a low bond premium! Get your FREE quote today to determine what you have to pay!
What are the Liquor License bond conditions?
- The bond should be issued by a corporate surety who is authorized to conduct business in the State of Iowa such as Surety Bond Authority
- The surety bond should be made payable to the State of Iowa
- The Class E liquor license holder is obligated to comply with the provisions of Section 123 of the Iowa Code, the rules and regulations of the Alcoholic Beverages Division of the Iowa Department of Commerce, and all the other applicable rules
- If the Class E liquor license holder commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
- The surety bond will remain valid until canceled. In case of cancellation, a 30-day notice is required
How can I obtain this type of bond?
To secure this type of bond, the Class E liquor license applicant must seek the assistance of a surety bond company.
You will first be asked to apply for this bond.
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Need this bond immediately? Call us today!