$5,000 City of Albany Street Opening Bond

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

Street Opening Bond

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How much does the City of Albany Street Opening bond cost?

City of Albany Street Opening bonds cost $100.

Is a Credit Check Required for City of Albany Street Opening Bonds?

Credit checks are not required for the City of Albany Street Opening bond.

Why is the City of Albany Street Opening bond required?

Businesses are required to purchase and file a $5,000 bond with the City of Albany 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 Albany Street Opening bond work?

City of Albany Street Opening bonds must be issued by an insurance carrier admitted by the NY Department of Insurance. The insurance company issuing any surety bond, such as the City of Albany Street Opening 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 Albany 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.