An Alabama Sales of Check Surety Bond is required by the Alabama Securities Commission in order to obtain a license to sell or issue checks in the state.
What are the requirements to get an Alabama Sales of Check License?
The code of Alabama states “No person, as a service or for a fee or other consideration, shall engage in the business of selling, issuing or otherwise dispensing checks or receiving money as agent for obligors for the purpose of paying such obligors’ bills, invoices or accounts without first obtaining a license from the Commission…”
In order to obtain a license in this state, the following requirements must be submitted to the Alabama Securities Commission:
- A completed application (form SA)
- An investigation fee of $250
- A licensing fee of $250
- Any branch office fees: $5 per location (in Alabama), up to $250 maximum
- Financial statements showing a net worth of at least $5,000
- An Alabama Sales of Check Surety Bond (form SB) in the amount of $10,000 plus $5,000 for each additional location (in Alabama), up to a $50,000 maximum
For more information about this licensing procedure, please visit the Alabama Securities Commission website, or see sections 8-7-1 through 8-7-15 of the 1975 Alabama Code.
What is the purpose of an Alabama Sales of Check Surety Bond?
The bond is in place to “secure the faithful performance of the obligations of the applicant and the agents and subagents of the applicant with respect to the receipt, transmission, and payment of money in connection with the sale or issuance or dispensing of checks or the payment of obligors’ bills, invoices, or accounts.”
It is important to note the Alabama Sales of Check Surety Bond is not insurance. In the event that the check seller fails to follow the regulations set forth in the Alabama Code, a claim can be made on the bond which the surety company (the company issuing the bond) would pay out if settled. Unlike insurance, the principal is obligated to repay the surety company for these losses.
Where can I get an Alabama Sales of Check Surety Bond?
To apply, all you need to do is submit our free online application! One of our licensed agents will contact you within one business day with a firm, no-obligation quote for the premium. If you choose to move forward after hearing the quote, we will have you sign any necessary paperwork and remit the premium payment. Once the payment is processed we will ship your Alabama Sales of Check Surety Bond to you via USPS Priority Mail, with overnight shipping options also available!
The surety bonding experts at Surety1 are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau!