Municipal Bonds

Required by states, cities and other licensing authorities from holders of licenses to engage in certain businesses, or permits to exercise certain privileges.

Most of the smaller license bonds guarantee simply that the principal will conduct his business in accordance with the laws or ordinances regulating such business are very desirable.

The License and Permit Bond classification includes, however, some bonds that are required by laws imposing upon the licensee and his surety a liability greater than that of simple compliance with the law. Also, there may be certain hazards inherent in the particular business engaged in by the principal.