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License and permits bond.
License and permits bond guarantee that the recipients of permits will comply with the ordinances associated with the use of such permits.
What is a license and permit bond?
- By ensuring that firms will abide by laws and other rules upheld by federal, state, and local government authorities, license and permit bonds shield consumers from harm.
- Each licensing bond is specific to a certain business and guards against potential harm to customers or the state.
- Governments and consumers are shielded by license bonds from the fraudulent activities of the bonded company.
- Before being allowed to operate businesses in a variety of industries must acquire a license and a permission surety bond.
Give an example of license and permit bond:
Airline Reporting Bond
- Bonds issued by airline reporting commissions (ARC) ensure that funds received by travel agencies are forwarded to the correct airline.
- An ARC bond claim may be made if someone pays a travel agent, but the agent fails to transmit the money to the correct airline.
- Federal law requires ARC bonds, thus each state must be covered by one.
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