Used interchangeably with the term “permit bond” to describe bonds required by state law, municipal ordinance or regulation, to be filed prior to the granting of a license to engage in a particular business or a permit to exercise a particular privilege. Such bonds provide payment to the obligee for loss or damage resulting from violations by the licensee of the duties and obligations imposed upon him.
License & Permit Bonds for Cities
License bonds guarantee compliance with various city, county and state laws that govern issuance of a particular license to conduct business. Permit bonds guarantee that a person licensed by a city, county or state agency will perform activities for which the bond was granted, according to the regulations governing the license.