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California Auctioneer ($20,000) Bond
Before people may engage in business as auctioneers or auction companies in the state of California, the California Civil Code 1812.600 mandates that they post a California Auctioneer Bond in the amount of $20,000.
Individuals who have been wronged by an auctioneer or auction corporation that has committed fraud, dishonesty, misstatements, misrepresentation, deception, illegal actions or omissions, or otherwise failed to offer their professional services as agreed upon are explicitly protected by this bond. In spite of the fact that the Surety Bond Auctioneer/Auction Company is the official name of state form SFSB-455, the auctioneer bond and the auction company bond are the more frequent names for this kind of bond.
By submitting this surety bond application in the state of California, you are agreeing to carry out your responsibilities as an auctioneer or auction firm in accordance with the requirements outlined in the California Civil Code. In the event that you fail to do so, the surety business that issued your bond will pay legitimate claims to those who were damaged up to the entire bond amount of $20,000, which you would be required to return in full.
After the bond has been approved and the required payment has been made, the original bond will be sent to you. It is required that a copy of the bond be submitted to the Secretary of State by clients of the auctioneer or auction firm who have engaged the services provided by any of those entities. It ensures that the Principal will faithfully fulfill their commitments in accordance with the requirements of the legislation by distributing the earnings from an auction to the appropriate parties.
Purpose
Before an auctioneer or auction firm may gain the necessary licensure to do business in the state of California, the Secretary of State necessitates that they post a surety bond known as the California Auctioneer Bond.
The California Auctioneer Bond, much like the bonds required for most licenses and permits, serves as an additional layer of enforcement for rules that are designed to safeguard the general public.
Any person or organization that is in the business of soliciting bids for items and then announcing the sale of those things after the auction has come to a close is known as an auctioneer or an auction firm. In the state of California, auctioneers and auction firms are required to have a state license, and in order to get that license, applicants are expected to have a $20,000 Auctioneer Bond in their possession.
A surety bond from a California auctioneer or auction firm guarantees that the principal will run their company in accordance with the rules and laws that are applicable to their industry. (Title 2.95, Part 4 of Division 3 of the Civil Code of the State of California).
It is possible for a person to file a claim against the bond if they experience a monetary loss as a result of the breach of the aforementioned rules and regulations. When this occurs, it is the responsibility of the principal to reimburse the surety for any and all damages that were paid out to the person who filed and was successful in their claim.
Bond Requirements
The requirement to post a California Auctioneer Bond can be found in Section 1812.60 of the California Business and Professions Code. The bond must be in favor of, and payable to, the people of the State of California. It must also be for the benefit of any person or persons who have been damaged as a result of any fraud, dishonesty, misstatement, misrepresentation, deceit, unlawful acts or omissions, or failure to provide the services of the auctioneer or auction company.
Any person may bring an action for the enforcement of those duties or to recover a civil penalty in the amount of one thousand dollars ($1,000), or for both enforcement and recovery, in the event that an auctioneer or auction company fails to perform any of the duties specifically imposed upon them.