License and Permit Bonds

February, 2010

Guarantee Compliance with Various Ordinances

Summary: Anyone who must obtain a license or permit from a political subdivision in order to conduct business usually needs a license and permit bond. These bonds guarantee to the governmental unit that the holder of the bond will comply will all regulations on their particular activity.

Other license and permit bonds permit members of the public to sue directly on the bonds. Typical wording allows suit by “any person or persons who may have a cause of action against said principal” under a particular ordinance or law.

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