License and Permit Bonds
License and permit bonds are required by certain federal, state, or municipal governments as prerequisites to receiving a license or permit to engage in certain business activities. These bonds function as a guarantee from a Surety to a government and its constituents (Obligee) that a company (Principal) will comply with an underlying statute, state law, municipal ordinance, or regulation.
Specific examples include:
- Contractor’s license bonds, which assure that a contractor (such as a plumber, electrician, or general contractor) complies with local laws relating to his field.
- Customs bonds, including importer entry bonds, which assure compliance with all relevant laws, as well as payment of import duties and taxes.
- Tax bonds, which assure that a business owner will comply with laws relating to the remittance of sales or other taxes.
- Reclamation and environmental protection bonds
- Broker’s bonds, including Insurance, Mortgage, and Title Agency bonds
- ERISA (Employee Retirement Income Security Act) bonds
- Motor vehicle dealer bonds
- Money transmitter bonds
- Health spa bonds, which assure that a health spa will comply with local laws relating to their field, as well as refund dues for any prepaid services in the event the spa closes.
Read more about this topic: Surety Bond, Commercial Surety Bonds
Famous quotes containing the words license and, license, permit and/or bonds:
“All is possible,
Who so list believe;
Trust therefore first, and after preve,
As men wed ladies by license and leave,
All is possible.”
—Sir Thomas Wyatt (1503?–1542)
“Nature is mythical and mystical always, and works with the license and extravagance of genius. She has her luxurious and florid style as well as art.”
—Henry David Thoreau (1817–1862)
“This is beautiful indeed; the colored people have given this to the head of the government, and that government once sanctioned laws that would not permit its people to learn enough to enable them to read this book.”
—Sojourner Truth (c. 1777–1883)
“It’s rather grisly, isnt it, how soon a living man becomes nothing more than a collection of stocks and bonds and debts and real estate?”
—John Dos Passos (1896–1970)