Have a question? 
+1 815-826-6324 (815-8-BondAI) 
phil@AmericasSuretyBonds.com
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
A California seller of travel bond has no fixed face amount. It stands in for the trust account, so it has to be at least as large as the customer money you would otherwise hold in trust, and it has to keep pace as bookings grow. Size it to your real peak balance, file a copy with the Attorney General before you advertise, and you can keep customer deposits in your operating account.
Under Business and Professions Code 17550.15, a California seller of travel must deposit 100 percent of customer payments for transportation and travel services into a federally insured trust account, or instead maintain a bond under section 17550.11. The bond must at all times equal at least the amount that would otherwise be held in trust. It is written by an admitted surety insurer, protects every passenger who loses money through a violation of the seller of travel law, and a copy is filed with the Attorney General.
We can help with all California bonds!
Section 17550.11 does not set a dollar figure. It requires a bond that is at all times no less than the amount section 17550.15 would make you hold in trust, and section 17550.15 requires 100 percent of all sums received for transportation or travel services to go into the trust account. A seller holding cruise and group tour deposits months before departure needs a far larger bond than one that passes funds straight through to carriers. A bond that was adequate last season can fall short after a strong sales quarter.
The bond runs to every passenger who sustains a monetary loss as a result of a violation of the article. No passenger can recover more than the amount paid to the seller of travel. The surety must give 30 days written notice to the seller and to the Attorney General's Consumer Protection Section before the bond is cancelled or terminated.
Section 17550.16(a) exempts transactions that meet paragraphs (1) through (6), or the separate condition in paragraph (7). Those paragraphs include selling air or sea transportation only through registered sellers or carriers, forwarding passenger funds without offset, holding active Airlines Reporting Corporation agent status, three years under the same ownership and selling only at retail. Read the section in full before relying on it. Sellers can also qualify through an approved Consumer Protection Deposit Plan, which calls for at least $1,000,000 in security held by the plan, or through an approved Consumer Protection Escrow Plan.
Anyone who sells or arranges air or sea transportation, or land or water vessel transportation when the total charge exceeds $300, is a seller of travel. California requires every seller of travel to register with the Attorney General and display the registration number in all advertising. The filing fee is $100 for each business location, registration is valid for one year, and the late fee is $5 a day up to $500.
There is no fixed figure. Section 17550.11 requires a bond that at all times equals at least the amount you would otherwise keep in trust, which is 100 percent of what customers pay you for transportation and travel services.
No. The bond is the alternative to the trust account under section 17550.15. You need one or the other unless an exemption in section 17550.16 covers the transaction.
Any passenger who suffers a monetary loss because of a violation of the seller of travel law, up to the amount that passenger paid you.
Possibly. Active Airlines Reporting Corporation agent status is one of the conditions in section 17550.16(a), alongside selling air and sea transportation only through registered sellers or carriers, forwarding funds without offset, three years under the same ownership and retail-only sales. Paragraphs (1) through (6) must all be met for the exemption to apply.
$100 for each business location. Registration is valid for one year, and a late renewal adds $5 a day up to $500.
This website is a referral and marketing platform that connects users with licensed insurance agents. We do not issue surety bonds directly except in states where we are licensed. All bond applications are processed and fulfilled by licensed agents. By using this site, you agree to our Terms & Conditions, Privacy Policy, and the use of cookies. If you do not agree, please exit the site.
