New York Motor Fuel Terminal Operator Bond
What is a New York Motor Fuel Terminal Operator Bond?
It is a financial security that motor fuel terminal operators must submit to the New York Department of Taxation and Finance. The tax commission may require motor fuel terminal operators to submit this before a license is issued.
The primary purpose of this bond is to ensure that the terminal operator will comply with the provisions of Articles 12 of the New York Tax Law as well as Articles 28 and 29 of the New York Tax Law plus the rules and regulations of the New York Department of Taxation and Finance.
As financial security, this bond will serve as a means to financially compensate any person that will suffer damages in case the terminal operator fails to fulfill the bonded duties and responsibilities.
How much does a New York Motor Fuel Terminal Operator Bond cost?
The bond premium will vary per bond applicant. This will be based on the applicant’s credit score and the bond amount.
Those who have excellent credit scores are eligible to pay a low bond premium or just 1.5% of the bond amount.
The bond amount is $10,000. However, the tax commission may increase the bond amount, so make sure that you clarify your bond amount before you apply for this bond.
Do you want to know your bond premium? GET YOUR FREE QUOTE HERE today!
How can I get a New York Motor Fuel Terminal Operator Bond?
The first step is to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once we have received your application, one of our surety bond specialists will contact you regarding the necessary documents that you need to provide for the next step of the bonding process called underwriting.
The information (your financial capacity, credit score, business history) that you will provide will be evaluated by our expert underwriter to give you the best possible bond premium rate.
Once the underwriting process is fulfilled, you will be asked to sign an indemnity agreement. After that, the bond will be issued and sent to you!
How does a New York Motor Fuel Terminal Operator Bond work?
This bond will serve as an agreement among three parties, namely:
Principal – motor fuel terminal operator
Obligee – People of the State of New York
Surety – surety bond provider
The Principal and the Surety will partner in assuring the performance of the former to the New York Department of Taxation and Finance.
The Principal is primarily responsible for the fulfillment of the obligations required. If the Principal fails to do any of the bonded obligations, the person who will be harmed will be eligible to file a claim against this bond.
The Surety will first verify the validity of the claim. Once the Surety has settled the claim, the Principal will reimburse the Surety for the payments made.
Ready to apply? START HERE!