This bond may also be referred to as an Apprentice Auctioneer Bond, ASBA Form, or Auction Surety Bond.
What is a surety bond, and why do I need one for my Alabama Auctioneers License?
A surety bond is a three-way agreement between a Principal (in this case, the Auctioneer or Apprentice Auctioneer), the Obligee (Alabama State Board of Auctioneers), and the surety company backing your bond. Unlike an insurance policy, a surety bond does not protect the Principal from financial liabilities. Instead, it protects the Obligee from any liabilities in the event that the Principal violates the terms of their licensure, and the Principal is obligated to repay any and all damages.
This bond is a requirement for anyone applying for an apprentice auctioneer or an auctioneer license in the state of Alabama, and acts as a guarantee to the Board of Auctioneers that the applicant understands and agrees to comply with all laws, regulations, and requirements outlined in the Auctioneers License Act No. 811-1973. In the event that the licensee violates these requirements, the Board, as well as the public, is protected from any damages resulting from the actions of the Apprentice Auctioneer or Auctioneer.
You are required to carry this surety bond for the entire duration of your licensure, and it is available for a flat rate in 1-, 2-, or 3-year terms at flat rates. The costs of the bond are as follows:
- 1-year – $100
- 2-years – $175
- 3-years – $250
The bond amount is $10,000 for each year.
It is important that you understand the terms of your bond as well as the terms of your license. In the event of any fraud or misrepresentation, you will likely have a claim filed against your bond. If the claim is found to be legitimate, your surety company will pay damages to the injured party, at which point you will need to repay the full amount to your surety, plus any associated fees. In addition, your surety company may revoke your bond, which will invalidate your licensure. Your license will not be considered valid until you file a new bond. Any claims filed against your surety bond act as a mark against your “credit,” and will be a negative factor in any future applications. Sometimes a claim may be the result of a miscommunication or may be found to be incorrect. It is important in any case to speak with your surety agent immediately to determine the best course of action. Your surety agent will perform the necessary investigation into any claim, and if it is found to be incorrect, will have no effect on your bond, standing, or licensure.
1-year - $100
2-years - $175
3-years - $250
You must be covered by this bond for the entire duration of your bond, so be sure you select the proper duration in your application.