New York Donated Food Processor Bond
Know the importance of this surety bond and how to easily get one!
What is a New York Donated Food Processor Bond?
It is a financial guarantee that must be provided by the donated food processor to the State of New York, Office of General Services, Division of Governmental Donated Foods.
The purpose of a donated food processor bond is to ensure that the processor will perform the following obligations:
- Handle certain unfinished foods donated by the United States Department of Agriculture (USDA) for processing said foods in accordance with the Donated Food Processing Agreement
- Process, manufacture, package or finish such foods according to the specifications in the said Agreement
- Return the finished product/s to the Eligible Recipient Agencies (e.g. school districts) in satisfactory condition
In addition, the donated food processor should comply with all the conditions of the Donated Food Processing Agreement.
How much does a New York Donated Food Processor Bond cost?
The bond premium varies. The bond premium will depend on the processor’s credit score and the bond amount.
The bond amount will be determined by the State of New York, Office of General Services, Division of Governmental Donated Foods.
If you have determined your bond amount, you may check your bond premium by getting your FREE SURETY BOND PREMIUM QUOTE HERE!
How can I get a New York Donated Food Processor Bond?
We’ve made the process easier so that you can get your license and start your business faster.
Just follow these simple steps on how to get this bond below:
- The first thing that you have to do is to APPLY FOR THIS BOND HERE!
- Your application will immediately be processed once we have received it. We will contact you if we need further information or if you need to submit documents needed for the prequalification process. The following will be checked during the prequalification process:
- Your financial capability
- Your business or job performance history
- Your credit score
Our expert underwriter will carefully evaluate all three in order 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 after the indemnity agreement is signed.
How does a New York Donated Food Processor Bond work?
This bond is an agreement among these 3 parties:
Principal – donated food processor
Obligee – State of New York, Office of General Services, Division of Governmental Donated Foods
Surety – surety bond provider
Through this bond, the Surety is guaranteeing that the Principal will faithfully and honestly perform his or her legal obligations. The Surety will also pay the sums due to an individual or group of individuals if the principal fails to fulfill the bonded obligations. Once the Surety has settled the claim, the Principal must reimburse the Surety for the payments made.