$5,000 City of White Bear Lake General License Bond

Businesses are required to file a $5,000 bond with the City of White Bear Lake (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.

General License Bond

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How much does the City of White Bear Lake General License bond cost?

City of White Bear Lake General License bonds cost $100.

Is a Credit Check Required for City of White Bear Lake General License Bonds?

Credit checks are not required for the City of White Bear Lake General License bond.

Why is the City of White Bear Lake General License bond required?

Businesses are required to purchase and file a $5,000 bond with the City of White Bear Lake 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 White Bear Lake General License bond work?

City of White Bear Lake General License bonds must be issued by an insurance carrier admitted by the MN Department of Insurance. The insurance company issuing any surety bond, such as the City of White Bear Lake General License 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 White Bear Lake 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.