What is a New York Motor Fuel or Diesel Motor Fuel Distributor Bond?
Know why this surety bond is important to your business!
Both motor fuel and diesel motor fuel distributors are required to register before conducting business in the State of New York. A surety bond is required before the said distributors are registered. Maintaining a sufficient bond is also required once registered.
Compliance with the applicable laws and rules is one of the reasons for the surety bond under Articles 12‑A, 13‑A, 28, and 29 of the New York State Tax Law.
Another reason is the assurance that if the registered motor fuel and diesel motor fuel distributors fail to promptly pay any sums due, the Obligee can recover the amount through the surety bond.
Motor fuel distributors import the following motor fuels into the state for distribution:
- Reformulated blendstock for oxygenate blending
- Conventional blendstock for oxygenate blending
- Fuel grade ethanol (ASTM International active standards specifications D4806 or D4814)
- Other motor vehicle engine products
Diesel motor fuel distributors, on the other hand, import into the state diesel motor fuel only.
What is the Motor Fuel or Diesel Motor Fuel Distributor Bond amount?
The bond amount will vary per registrant and will be determined by the Tax Commission. However, the minimum bond amount is $50,000.
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 Motor Fuel or Diesel Motor Fuel Distributor Bond?
You can easily get this surety bond from us! We will guide you through the entire process.
Here’s how to do get bonded:
- You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
- After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Tax payment history
- Your credit score
An expert underwriter will carefully evaluate all three to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Your surety bond will be issued and sent to you!
What are the surety bond conditions?
- The surety who will issue the bond should be approved by the superintendent of Financial Services
- The People of the State of New York should be named as the Obligee
- The registrant should follow the provisions of Articles 12‑A, 13‑A, 28, and 29 of the New York State Tax Law, as well as the rules and regulations of the New York State Department of Taxation and Finance
- If the registrant violates the conditions, the aggrieved party will be eligible to file a claim against the surety bond
- The Tax Commission may increase the bond amount if deemed necessary
Get registered fast! APPLY NOW!