A health club bond? A lottery bond? Surely these sound quite unfamiliar and exotic.
In the sea of commercial bonds, there are some rather unexpected situations when a surety bond is required. These vary from a liquor bond to a roofer license bond – and beyond. Find out five of the rather offbeat surety bonds below.
Health Club Bond
Who would have thought that a gym needs to post a surety bond? Apparently, it really has to. Gyms and health clubs that have a membership fee or have other payment requirements are obliged to obtain a Health Club Bond. The aim is to provide protection to club members so that they are guaranteed that the health club will abide by the contractual obligation of the membership.
As for the bond amount, it varies from state to state. In most states it depends on the length of the membership or on the size of the health club or gym. In some cases, it is a flat rate for all.
A lottery machine in your facility means you will need to post a lottery bond, another bizarre kind of surety bond. Its purpose is to ensure that lottery machines are being used in an appropriate manner, without potential misuse of the state lottery.
The Lottery/Lotto Bonds are officially required by the State Lottery Commission and are seen as financial guarantee bonds. They are considered as small and low-risk bonds.
Do you get telemarketing phone calls rather often? Actually, did you know that even telemarketers are supposed to obtain surety bonds in order to operate as such? The Telemarketing Bonds are also known as Phone Solicitor or Professional Solicitor Bonds. They are a sort of a license for the telemarketer for the state in which they are functioning.
The aim of the bond is to ensure that consumers are protected in case a telemarketer is not following state regulations. It may be difficult to obtain such a bond, as there have been new rules introduced in the field recently.
Liquor/ Alcohol Tax Bond
The Liquor Bond is not such an awkward-sounding bond, but because of its name is still quite curious. It is targeted at anybody involved in the manufacturing, sale or storage of alcohol. States require this bond to ensure protection in case of bad records or inability of payment by companies.
The Alcohol Tax bond is considered a financial guarantee bond, but is a low risk one.
Roofer License Bond
Although the Roofer License Bond belongs to the more general construction bonds category, it is still a rather odd one because of its specific nature. Roofers need to obtain this bond in order to get their license. These bonds ensure that the roofer will meet all the requirements of the state in which they operate.
Not so much is known about surety bonds in general due to their specific nature and because they are required only in certain situations. But isn’t it illuminating to know the strangest bonds required? Stay tuned for the next 5 unexpected surety bonds in part 2.