$500 City of Fort Smith Mixed Drink Permittees Bond

Businesses are required to file a $500 bond with the City of Fort Smith (the "Obligee") to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from a licensed business breaking licensing laws.

Mixed Drink Permittees Bond

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How much does the City of Fort Smith Mixed Drink Permittees bond cost?

City of Fort Smith Mixed Drink Permittees bonds typically cost between $100 and $125 depending on the personal credit, license history and experience of the business owners.

Is a Credit Check Required for City of Fort Smith Mixed Drink Permittees Bonds?

Surety carriers will run a credit report as part of underwriting the bond because the business ultimately must reimburse the surety bond company for any claims made on the bond.

Why is the City of Fort Smith Mixed Drink Permittees bond required?

Businesses are required to purchase and file a $500 bond with the City of Fort Smith to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from the failure of a licensed business complying with the provisions of licensing laws.

How does the City of Fort Smith Mixed Drink Permittees bond work?

City of Fort Smith Mixed Drink Permittees bonds must be issued by an insurance carrier admitted by the AR Department of Insurance. The insurance company issuing any surety bond, such as the City of Fort Smith Mixed Drink Permittees bond, will also be referred to as the “surety company” or the “bond company”. The business is referred to as the Principal, the surety bond company as the Obligor and the City of Fort Smith as the Obligee.

The surety company provides the Obligee a guarantee (the surety bond) that the customers, vendors and employees of a licensed business will receive payment for financial damages due to a violation of licensing law up the bond amount stated on the bond form (“penal sum”). The bond company also directly receives claims from the public and determines the validity of claims. Ultimately, the licensed business owners are responsible for their actions and required by law to reimburse the surety company for any payments made under the bond or face indefinite license suspension.