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Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
For a California auction company, the $20,000 bond on file with the Secretary of State is the state requirement that keeps the doors open. Civil Code 1812.600 bars any auction company from conducting business without a current bond on file. We write it on the state's own SFSB-455 form, so it is ready to mail to Sacramento with the $30 filing fee.
Under California Civil Code 1812.600, every auctioneer and every auction company must maintain a $20,000 bond from a surety admitted in California and file a copy with the Secretary of State. The bond runs to the People of the State of California for the benefit of anyone damaged by fraud, dishonesty, misrepresentation, unlawful acts or failure to provide auction services.
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Civil Code 1812.601 defines an auction company as any person who arranges, manages, sponsors, advertises, accounts for the proceeds of, or carries out auction sales, whether at a fixed location such as an auction barn, gallery, sale yard or sale pavilion or elsewhere. The individual who calls the bids is an auctioneer, and Civil Code 1812.600(a) puts the same $20,000 bond requirement on auctioneers. The company bond and the auctioneer bond are separate filings, one for each principal.
The definition of auction in section 1812.601 excludes wholesale motor vehicle auctions and sales of real estate. Outside those exclusions, the amount is a flat $20,000 with no tiers for sales volume or number of sale sites.
No auctioneer or auction company may conduct any business without a current bond on file with the Secretary of State. A surety must give 30 days written notice to both the principal and the Secretary of State before cancelling. If a replacement bond is not filed by the cancellation date, the company must stop doing business until one is. Any person can sue to enforce the duties in this title or to recover a $1,000 civil penalty, plus attorney fees and costs.
The bond is written on Secretary of State form SFSB-455, Auctioneer/Auction Company Surety Bond. The filing fee is $30, and the form is submitted by mail or in person. The mailing address on the form is California Secretary of State, P.O. Box 942870, Sacramento CA 94277-2870. The form carries a minimum term of 24 months. A deposit may be made in place of the bond under Code of Civil Procedure 995.710, but that ties up the full $20,000.
The surety quotes premium on the $20,000 penal sum after reviewing the owners, including personal credit. Confirm the current form and filing steps with the Secretary of State before the bond is issued.
Civil Code 1812.600 requires every auctioneer and every auction company to maintain a $20,000 bond. The company bond is filed in the company name. Individuals who call bids are auctioneers under section 1812.601 and carry their own bond.
The definition of auction company in section 1812.601 is not limited to a physical sale barn or gallery. It covers anyone who arranges, manages, advertises, accounts for proceeds of, or carries out auction sales. The listed exclusions are wholesale motor vehicle auctions and real estate sales.
The surety must give you and the Secretary of State 30 days written notice. If a new bond is not filed by the cancellation date, you must stop conducting business until it is.
Yes. Civil Code 1812.600(d) allows a deposit in lieu of the bond under Code of Civil Procedure 995.710. The Secretary of State holds a cash deposit for two years after you notify it that you have stopped doing business or replaced the deposit with a bond, as long as no claims are outstanding.
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