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California Telephone Corporation $25,000 Bond
In order for telephone corporations, telemarketers, and telephonic sellers to lawfully do business in the state of California, they are needed to comply with both of the state’s surety bond regulations. The California Public Utilities Commission (CPUC) is responsible for requiring the California Telephone Corporation Bond, while the California Attorney General is responsible for requiring telemarketers to post the Telephonic Seller Bond.
The coverage amount of the California Telephone Corporation Bond has to be larger than or equal to 10% of the company’s intrastate revenues that were reported to the Commission during the previous calendar year, or $25,000. Whichever sum is higher will serve as the minimum requirement. The Telephonic Seller Bond must have a coverage amount of at least $100,000 in order to be accepted by the California Attorney General’s Office.
The California Telephone Corporation Bond is required as a performance bond in accordance with CPUC Decisions D.10-09-017/D.11-09-026. This bond guarantees the prompt payment of any monetary sanction (such as fines, fees, surcharges, taxes, penalties, and restitution) imposed against the principal, its representatives, successors, or assigns, in any CPUC enforcement proceeding brought under the California Public Utilities Code and CPUC Decisions that are applicable to telephone corporations.
The furnishing of a $100,000 assurance that the bonded company will comply with all requirements set out in Section 17511.2 of the California Business and Professions Code is a condition that is placed on the Telephonic Seller Bond by the Office of the Attorney General of the State of California. According to the provisions of the legislation of the California Business and Professions Code, any person or government body that has suffered monetary loss has the legal right to submit a claim against the surety bond.
In the state of California, surety guarantees for telephone corporations are of a continuing nature. The surety has the ability to terminate the bond by providing written notice of cancellation to both the CPUC and the principal at least 30 days before the effective cancellation date. This notification must be sent by certified mail.
In the state of California, the Public Utilities Commission mandates that telephone companies post surety bonds in the amount of $25,000. Because of the fact that these bonds are subject to underwriting consideration, the amount that you’ll pay will be determined by an analysis of your individual credit record.
In order to get a license to operate as a telephone or other communication service provider in the state of California, applicants are required to post a surety bond in the amount of $25,000. These bonds are required to go through the underwriting process, and the price will change depending on the major issuer’s credit rating. It is possible that the fee will be as little as 1% or $250 for those who have a lot of qualifications. Because of the nature of these bonds, they do not expire at the end of a certain period and do not need to be renewed.
California Telephone Corporation Bond Significance
Telephone companies in California are required to comply with all of the stipulations of the California Public Utilities Code and any rulings made by the CPUC that are relevant to the industry as a condition of purchasing bonds issued by the state.
In the end, this bond protects customers who are affected as a consequence of the principal’s unethical and illegal business actions by providing compensation for their losses. In the event that a consumer is compromised, the surety will pay damages up to the entire amount of the bond, and the principal will refund the surety for any damages that were paid out.