What is a New York Airline Reporting Bond?
Be a part of the Airlines Reporting Corporation’s Agency List through this surety bond!
There are over $5 Billion airline transactions and over 15 million passenger trips made by the Airlines Reporting Corporation each month.
If you are intending to become part of this growing industry, you will be obligated to secure a surety bond first.
Every Agent for or on behalf of an airline carrier that has entered into the ARC Carrier Services Agreement must submit and maintain a surety bond as a form of financial guarantee.
The Agent’s surety bond will be used to cover various conditions such as, but are not limited to, the following after the Agent has terminated its Agent Reporting Agreement:
- Unpaid transactions that have been made
- All the amount owed from dishonored drafts
- All the amount owed from the unlawful use of the ARC Traffic Documents
What is the Airline Reporting Bond?
AGENTS WITHOUT ASSOCIATE BRANCHES
First Year on the ARC Agency List: the minimum bond amount is $20,000
Second Year on the ARC Agency List: the average monthly cash remittance within a given 12-month period. However, the maximum bond amount is $70,000.
Two or more years on the ARC Agency List: the minimum bond amount is $10,000, and the maximum bond amount is $70,000.
AGENTS WITH ASSOCIATE BRANCHES
$70,000 – minimum bond amount
$150,000 – maximum bond amount
The amount will be calculated based on the Agent’s average monthly cash remittance within a given 12-month period.
If you have determined your bond amount, you may get your tailored bond premium from us immediately! You can pay as little as 1% of the bond amount!
Find out yours! GET YOUR FREE SURETY BOND QUOTE!
How can I get an Airline Reporting Bond?
SEND US A BOND APPLICATION – We begin the bonding process with an application. You may send your application for this bond HERE!
UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
You will also need to submit a copy of the bond form which can be obtained from the Airlines Reporting Corporation (ARC).
To avoid any delay, make sure that your requirements are complete before submitting them.
ISSUANCE – As soon as the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you!
What are the surety bond conditions?
- The surety who will issue the bond should be part of the U.S Treasury Department’s Circular 570 “Surety Companies Acceptable on Federal Bonds” list
- The Obligee should be the ARC
- The Agent should obey the rules of the ARC’s Agent Reporting Agreement
- If the Agent defaults on its obligations, the aggrieved party will be eligible to file a claim on the surety bond
- The Agent will receive a 90-day notice if the ARC increases the bond amount
- The Agent may increase the bond amount to 25% per quarter
Get your bond ASAP! APPLY NOW!