Alabama Compressed Natural Gas / Liquefied Natural Gas Bond

Alabama Compressed Natural Gas / Liquefied Natural Gas Bond Form

Obligee Info:

State of Alabama Department of Revenue Business & License Tax Division
PO Box 327540
Montgomery AL 36132-7540

Cancellation Period:

30 days

Limit:

$0 - $999,999

Credit Check Required?

Yes

Businesses are required to file a bond with the (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.

How much does the Alabama Compressed Natural Gas / Liquefied Natural Gas bond cost?

Alabama Compressed Natural Gas / Liquefied Natural Gas bonds typically cost between $500 - $6,250.

Is a Credit Check Required for Alabama Compressed Natural Gas / Liquefied Natural Gas Bonds?

Credit checks are required for the Alabama Compressed Natural Gas / Liquefied Natural Gas Bond.

Why is the Alabama Compressed Natural Gas / Liquefied Natural Gas bond required?

Businesses are required to purchase and file a bond with the 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 Alabama Compressed Natural Gas / Liquefied Natural Gas bond work?

Alabama Compressed Natural Gas / Liquefied Natural Gas bonds must be issued by an insurance carrier admitted by the Alabama Department of Insurance. The insurance company issuing any surety bond, such as the Compressed Natural Gas / Liquefied Natural Gas 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 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.