What is a North Carolina Prepaid Entertainment Bond?
Know the what, why, and how of this important surety bond!
What is a Prepaid Entertainment Bond?
It is a financial security requirement that every person or business entity who offers prepaid entertainment contracts must procure.
Prepaid entertainment contracts are services that a buyer pays for before a particular service is used or enjoyed. The services includes, but is not limited to, the following:
- Dance lessons or facilities, or any other establishment that provides similar service
- Any service that provides opportunity to its members to meet the opposite sex such as a dating, matching, or social club
- Health or athletic club services or facilities
- Martial arts training
The purpose of the surety bond is to ensure the compliance of the owners or business entities that offers prepaid entertainment contracts to the applicable laws and to its contractual obligations to the buyer.
The buyer will have the right to recover any potential losses if the establishment goes into bankruptcy or has ceased operation through a bond claim.
What is the Prepaid Entertainment Bond amount?
The bond amount should be $10,000 or equal to the aggregate value of outstanding liabilities to buyers, whichever is greater.
If you know your bond amount now and would like to find out what your bond premium will be, you may get your FREE SURETY BOND QUOTE from us HERE!
Those who have excellent credit scores will be eligible for a very low bond premium, or just 1% of the bond amount!
How can I get a Prepaid Entertainment Bond?
In order to secure this type of bond, the applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
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.
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!
What are the surety bond conditions?
- The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in the State of North Carolina
- The surety bond should be made payable to the State of North Carolina
- The owners or business entities that offers prepaid entertainment contracts must comply with the provisions of Sections 66-118 until 66-125 of the North Carolina General Statutes as well as the rules and regulations of the Attorney General
- If a violation is committed, the aggrieved party will be eligible to for a claim against the bond