Tax Bonds
Obtaining tax bonds of a relatively small size is similar to the property owner obtaining a credit card or bank loan (although some companies may instead choose the alternative of paying the bond’s premium to delay the tax payment).
For instance, as long as the owner’s credit (i.e., company’s, owner's, and spouse's) is good, paying an average of a 2% bond premium postpones the current need to provide tax payment to the county.
For Smaller Tax Bonds (under $50,000)
• A copy of the letter from the tax collector
• Email address(es) and a photo of the front and back of the ID(s) of each person who signs as the indemnitors
• An attached and completed “multi-app” below:
HCC Multi-App
For Larger Tax Bonds (over $50,000)
HCC Multi-App
Complete and return this application with at least one current bank and personal financial statement from each owner (only one of each for married couples however each spouse needs to indemnify).
Also, send the normal letter from escrow that discusses the requirement size, and addresses the parcel address details.
We also require a general idea of the purpose for not paying immediately and whether or not renewal in a year is a likelihood.
If there is a corporation that owns the property (or one the owners control that would also be available to indemnify the surety) send over a bank and financial statement for it too. Sending over the first couple of pages of tax returns for any party that will assist in the indemnification process is also helpful. The greater the financial wherewithal, the lower the risk, and the lower the premium quote will be is instrumental in understanding the process. The underwriter will want to see that there is liquidity somewhere to eventually pay the tax liability.
The rate will be determined by the credit and financials of the applicants.
Please return with a copy of the title company’s letter that references the specifics of the requirement. If the Owner/Principal prefers, electronic signatures can be obtained later with a copy of each owner's (husbands and spouses required) driver's license and separate email addresses for each.
Improvement Bonds
IF UNDER $50,000:
• Complete the application attached below:
You can list multiple bonds on a single application!
For example, if you need a $2,000 Monument bond plus a $15,000 Grading bond, list them both on one copy of the application.
• Return with related city/county paperwork such as engineering estimates, budgets, correspondence, and bond forms. Be sure to include the name, address & phone number of the owner/city contact.
• Finally, send us your filled-out application to us here.
IF OVER $50,000:
• Complete the questionnaire attached below:
• Complete the bond request form attached below:
• Return with personal/business financial statements.
• Return with bank or loan page proving funds available to do work.
• Also, send any related paperwork from the city/county such as engineering estimates, budgets, correspondence, bond forms.
Subdivision Bonds
• Subdivision Bond Questionaire (you can use our below form).
Subdivision Bond Questionare
• Business financial statements (if available).
• Personal financial statements for each owner (you can use our below form).
Personal Financial Statement
• If LLC, attach Operating Agreement.
• Development Agreement, Subdivision Agreement, or Other Plan Filed with Municipality for Subdivision Approval.
• Engineer's Cost Breakdown.
• Bond Forms required by Obligee.
• Optional: Resumes of owners (you can use our below form).
Resume Format
License Bonds (in order of popularity)
California Contractor's State License Bond
Print and sign this application for the lowest preferred rate:
Backup Application
As a backup, we suggest this application as a backup (just in case you don't qualify in the above-preferred program).
• $125 for 1 Year: $200 for 2 Years;
• $275 for 3 Years; $342 for 4 Years;
• $392 for 5 Years (Requires a minimum credit score of 625) (recommended)
California Application for those with Average Credit
Use this application in California as a standard alternate for those with average credit:
• $187.50 for 1 Year;
• $328 for 2 Years;
• $469 for 3 Years (recommended)
Any State
This application can be used in any state; rates vary.
Credit Scores of at least 500
Now available to those with credit scores of at least 500.
Cost of bond ranges depending on credit score.
$475 for a credit score of 590-624;
$875 for a credit score of 550-589;
$1,250 if credit score is 500 or higher (recommended)
Poor Credit?
If you have poor credit and looking for a lower rate, send several requests and complete the corresponding application here.
We also recommend this Contractors License Bond application, because having others add to your qualifications helps; as well as this Additional Personal Indemnitor application to "co-indemnify." Rates vary when credit is a problem.
• Roofers: $250 for 1 Year; $450 for 2 Years
• Swimming Pool Contractors: $550 for 1 Year, $1,000 for 2 Years)
Other Bonds
Civil Court Bonds
For civil court bonds, , such as Mechanical Lien release bonds, use this application (2-4% rate).
$26,500 City of Los Angeles Sewer/Storm Drain Connection Permit Bond
Complete this application (only $128 annual premium with acceptable credit!)
Stop Notice Bonds
STOP NOTICE BONDS are usually 2% or less and with good credit and financial wherewithal do not require collateral to issue. Just complete this civil court bond application, this stop notice supplemental, this personal financial statement (or similar), and return with a current business financial statement, the first pages of current business and personal bank/brokerage statements, the stop notice, and the contract.
For the following bonds, complete the application below:
HCC Multi-App
Estimated premiums charges (also below) are subject to change depending on company & ownership credit:
Alcohol Excise Tax Bond ..................................................................... 4%
A.R.C.-Travel Agency Bond ................................................................. 5%
Auctioneer Bond ............................................................................... 3%
Disciplinary Contractor's License Bond ................................................. 10%
Disciplinary Roofing Bond ..................................................................... 10%
Disciplinary Swimming Pool Bond ......................................................... 10%
Escrow Agent Bond ............................................................................ 5%
Farm Labor Contractor Bond ................................................................ 2%
Fish & Game License Rates: ................. $75 for 1 Year; $130 for 2 Years; $180 for 3 Years
Fuel Tax Bond ................................................................................... 5%
Insurance Adjuster Bond ..................................................................... 2%
Insurance Broker Bond .......................................................... 1.5% for 3 Years
Janitorial Bond Rates: .. $25,000 Bond - $275 for 1 Year; $50,000 Bond - $550 for 1 Year
Mortgage Broker Bond ........................................................................ 3%
Motor Vehicle Dealer Bond .................................................................. 3%
Notary Bond .......................................................................... $30 for 4 Years
Pest Control ..................................................................................... 5%
Pest Control Restoration .................................................................. 7.5%
Process Servers Bond ............................................................. $50 for 2 Years
Sales Tax Bond ............................................................................... 10%
Sanitation $5,000 Bond Guarantee ............ $750 for a 3-year term
Tax Preparer Bond ...... Depends on # of employees, limit, and term
Union Welfare Bond ...................................................................... 5-10%
Utility Deposit Bond ......................................................................... 10%
For Customs bonds, complete the application below and fax or email us with the company financial statement. (note: bond rates, sometimes less than 1%, along with any additional underwriting requirements, vary depending on personal & business credit and equity significance).
CNA Surety Form 10
For Immigration bonds, complete the same application (note: Premium varies with credit and equity significance).