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license / permit bond

A License Bond is used interchangeably with the term “Permit Bond” to describe bonds required by state law, municipal ordinance or regulation, to be filed prior to the granting of a license to engage in a particular business or a permit to exercise a particular privilege.

Such bonds provide payment to the obligee or, in some instances, to third parties for loss or damage resulting from violations by the licensee of the duties and obligations imposed upon him or her.

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