What is an Alabama Automobile Dismantler & Parts Recycler Surety Bond?
Any person, firm or corporation engaging in the business of an automotive dismantler and parts recycler is required to post a $25,000 surety bond with the Alabama Department of Revenue to legally conduct business in the state.
This Automobile Dismantler & Parts Recycler Surety Bond guarantees that the principal (dismantler & recycler) operates their business ethically and in compliance with all regulations and statutes of the state of Alabama. The bond also protects harmed parties from financial loss if the principal fails to comply with the terms of the bond. If a valid claim is filed against the bond, the surety will pay out up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred.
What is the fine print of the bond?
- The bond must be issued by a surety authorized to conduct business in the state of Alabama
- The principal must be duly licensed as an “automotive dismantler and parts recycler” by the Alabama Department of Revenue as provided for in the Sections 40-12-410 through 40-12-425 of the Code of Alabama 1975
- The bond is continuous in nature and remains in full force and effect until canceled
- The bond can be terminated by the surety at any time by giving sixty (60) day written notice to the Alabama Department of Revenue
How much will my bond cost?
Pacific Surety is proud to offer a variety of approvals regardless of credit, with rates as low as 0.50% annually for well qualified applicants. The process typically takes just a few hours for a quote, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.