Michigan Watercraft Certificate of Title (Vehicle Uniform) Bond

Businesses are required to file a bond with the State of Michigan Department of State (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.

Watercraft Certificate of Title (Vehicle Uniform) Bond

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How much does the Michigan Watercraft Certificate of Title (Vehicle Uniform) bond cost?

Michigan Watercraft Certificate of Title (Vehicle Uniform) bonds typically cost 1.5% of the bond amount.

Is a Credit Check Required for Michigan Watercraft Certificate of Title (Vehicle Uniform) Bonds?

Credit checks are not required for the Michigan Watercraft Certificate of Title (Vehicle Uniform) Bond.

Why is the Michigan Watercraft Certificate of Title (Vehicle Uniform) bond required?

Businesses are required to purchase and file a bond with the State of Michigan Department of State 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 Michigan Watercraft Certificate of Title (Vehicle Uniform) bond work?

Michigan Watercraft Certificate of Title (Vehicle Uniform) bonds must be issued by an insurance carrier admitted by the Michigan Department of Insurance. The insurance company issuing any surety bond, such as the Michigan Watercraft Certificate of Title (Vehicle Uniform) 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 State of Michigan Department of State 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.