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California Aircraft Jet Fuel Dealer Bond
The California Aircraft Jet Fuel Dealer Bond is required of anybody who wants to sell aviation jet fuel in the state of California. The California Department of Tax and Fee Administration requires the submission of this bond in order to fulfill the criteria for the aviation jet fuel dealer permit. Other requirements include the submission of an application form that has been filled out in its entirety and the payment of a registration fee.
The surety bond will serve as a guarantee that the dealer of aviation jet fuel will pay all required taxes in a timely manner.
The dealer in aviation jet fuel is required, as a condition of the bond, to comply with the requirements of Chapter 2 of Title 14 of component 2 of the Code of Civil Procedure and Part 2 of Division 2 of the Revenue and Taxation Code. This obligation is imposed as a component of the bond condition.
Bond Amount
The amount of the bond premium will vary from 1% all the way up to 6% of the bond’s face value. The credit rating of the aviation jet fuel dealer will determine the cost of the bond premium.
The California Department of Tax and Fee Administration will decide the amount of the bond that must be posted.
Purpose
Any company that is actively involved in the business of an Aircraft Jet Fuel Dealer is required to submit an application to the California State Board of Equalization and get a permit before beginning operations. The dealer is required to post and maintain a California Aircraft Jet Fuel Dealer Bond as part of the permit procedure. This bond serves as an assurance that the dealer will pay any taxes that are involved with the sale of aircraft jet fuel.
How It Works
The California Aircraft Jet Fuel Dealer Bond is a legally binding commitment about the performance of the principal (aircraft jet fuel dealer) given by the surety (the party that will issue the bond) to the obligee (the State of California).
The principal is legally obligated to carry out the responsibilities that have been assigned to them in the way that the law requires. In the event that the principal breaches any of the requirements of the bond, the obligee has the right to submit a claim. The claim has to be paid off by the principal before anything more can be done.
If the principal is unable to pay the claim, the surety will do so on the principal’s behalf as required by the stipulations of the bond. Before making any payments to the obligee, the surety is going to first determine whether or not the claim being made is legitimate. After the payment has been paid, the principal is the one who is responsible for compensating the surety for any losses.
Qualifications/Requirements
An application, which you will need to finish, and sign, as well as a credit check, are required in order to qualify for the California Aircraft Jet Fuel Dealer Bond.
As part of the process of underwriting your bond, extra financial information may be asked from you if the value of your bond is especially significant. In most cases, the more paperwork that can be verified, the stronger the case will be in favor of the individual who has it.
It is necessary to have excellent credit in order to get accepted. The lowest amount required for approval is $100, and the approval rate is 1% of the total amount of the surety bond.
The surety company will instantly provide your bond to you after it has been determined that your California Aircraft Jet Fuel Dealer Bond is acceptable and the payment has been paid.
Your original surety bond, as well as a Power of Attorney form, and a notarized paperwork from the surety company stating that they are the surety will be given to you so that you may file them. You are required to sign your bond as principal as soon as it arrives in the mail, and then you must file your bond with the California State Board of Equalization.