Time For Renewal: Three Surety Bonds Expire on March 31

Published: Mar 20, 2014
The thing about surety bonds is that once obtained, they are not for life. They do have an expiration date and have to be renewed either annually during even-numbered years.

Three bonds expire on March 31, 2014:

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  • Georgia used cars auto dealer bonds
  • New Jersey motor vehicle dealer bonds
  • Ohio fundraiser/professional solicitor surety bonds

Before I go into detail about any of them, let me just remind you that in order to stay in compliance with the laws of your state and industry, you must renew your bond before the deadline. The sooner, the better. If you don’t meet the deadline, the government agency that deals with licensing and registration for your line of business will be notified of an expired bond. That will put your license at risk, too.

Lance Surety Bonds can be a quick and painless way to your bond renewal. Frankly, you need to act fast, because the end of March is approaching. So if you have questions, give us a holler.

Georgia Used Car Auto Dealer Bond

The state of Georgia requires that all sellers of used cars be licensed and bonded. Both the license and the bond expire on March 31st of even-numbered years. You have to renew your bond in order to renew your license, because the bond is a major requirement for obtaining a license to begin with.

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The Georgia auto dealer bond is set at $35,000, and it must be in the exact name of the business. Another requirement is to send in the original bond along with the completed certificate of “power of attorney,” which acts as a proof that the bond is true.
Make sure to sign the bond and retain a copy for your files.

New Jersey Motor Vehicle Dealer Bond

All new and used car dealerships in New Jersey must post a $10,000 surety bond in order to operate. The bond must be for a 12-month term and when it expires, it must be renewed for another 12-month period.

Lance Surety Bonds is based in southeastern Pennsylvania, only a few miles away from the New Jersey border. Our agents know the state’s bond requirements in and out.
If you need bond renewal, complete the online application. Most principals get a hassle-free instant approval.

Ohio Fundraiser/Professional Solicitor Surety Bond

A $25,000 Ohio professional solicitor bond must be posted by any one entity that wishes to be licensed as a professional solicitor or fundraiser for a charitable organization. It is required by the State of Ohio Attorney General.

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Under the category of professional fundraisers also fall fundraising consultants, grant writers and associates, and counselors. The bond must be renewed every year, and it is required as a guarantee that these professionals will plan, conduct, and carry out campaigns and solicitations in compliance with local, state and federal laws.

The Bond

Just like when you applied to get bonded for the first time, now that you have to renew the bond, you’ll pay the annual premium, which is a percentage of the bond cost. The premium will vary according to your credit score, because surety bond companies always assume a 0 % loss ratio.

If your credit score is above 650, you’ll pay between 1% – 3% of the bound amount.
If your credit score is below 650, then you are considered a high-risk applicant and will be asked to pay between 5% and 15%. It’s not unusual that the surety will require a small collateral to be posted in some cases as an extra precaution. Among the other conditions that may increase your premium are civil judgments, tax liens and past bankruptcies.

By definition, if you have an open bankruptcy or late child support payments, you’d be denied a surety bond.

If you need to renew any of the mentioned bonds, act now, because you are running out of time. Don’t risk your license!

We, at Lance Surety Bonds, will help you get bonded fast, and at the lowest possible price! Call us at (877) 514-5146 today or apply directly online! We’ll make sure you don’t miss the deadline!

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.