Surety Bond Encyclopedia

Disposal Fees Guarantee of Payment Bond - San Bernardino, CA in California

Brief Summary

Haulers and contractors who dump regularly at San Bernardino area landfills do not want to pay cash or card at the scale house on every load. A guarantee of payment bond backs your promise to pay disposal fees on a billed basis, so the obligee carries less risk on your account and you keep your cash in the business.

This bond guarantees that a business will pay the disposal fees it runs up at public landfills and transfer stations in the San Bernardino area. Those fees are set by the San Bernardino County Solid Waste Management Division, which runs the county's disposal system. The bond amount is set by the obligee for each account. Confirm the amount, bond form and filing steps with the obligee before the bond is issued.

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How to Apply for a Disposal Fees Guarantee of Payment Bond:

  • Ask the obligee for the required bond amount and its bond form.
  • Have your legal business name exactly as it will appear on the disposal account.
  • Provide owner name and contact details for the bond application.
  • Complete the bond application and review the quote.
  • Pay the premium and receive the signed bond.
  • Send the original bond to the obligee with your account paperwork.

Detailed Information About the California Disposal Fees Guarantee of Payment Bond:

Why this bond exists

The San Bernardino County Solid Waste Management Division operates the county's disposal system of five regional landfills and nine transfer stations. Its published fee page says payment at the sites is by cash, Visa, MasterCard or as otherwise provided by ordinance. A business that wants to haul now and pay later on an invoice has to give the obligee some assurance that the bill will be paid. This bond is that assurance.

What it guarantees

The bond promises that the business will pay its disposal charges when billed. If the account goes unpaid, the obligee can make a claim against the bond up to its face amount. The surety pays valid claims and then collects the money back from the business. The bond is not insurance for the hauler, and it does not cap what the business owes.

What the fees look like

Disposal at county sites is charged by weight, with separate per ton rates for residential waste over 300 pounds, per tire charges, and add on fees for hard to handle and special handling loads. Uncovered or unsecured loads are charged double. The rates include the state fee, perchlorate surcharge and waste diversion program charges. Heavy users can run up a large balance in a single month, which is why a payment guarantee is asked for.

How much

The amount is set by the obligee for each account, not by a published flat figure. Ask for the required amount, the bond form and where to send the original before you buy.

Eligibility and Requirements for a California Disposal Fees Guarantee of Payment Bond:

  • Obligee named exactly as it appears on its bond form.
  • Bond amount as set by the obligee for your account.
  • Business name on the bond matching the disposal account.
  • A surety company admitted to write bonds in California.
  • Owner credit review, which mainly affects the premium rate.

California Disposal Fees Guarantee of Payment Bond FAQs:

Who needs this bond?

Businesses that want disposal fees billed to an account instead of paying at the scale house for each load. Haulers, roll off operators and contractors with steady disposal volume are the usual buyers.

How much is the bond?

The obligee sets the amount for each account. Ask for the figure before you apply so the bond is written for the right amount.

What does the bond cost?

You pay a premium, not the full bond amount. The surety prices it from the bond amount and the owner's credit and business history. Request a quote to see your exact price.

What happens if I fall behind on disposal bills?

The obligee can claim against the bond for the unpaid balance up to the bond amount. The surety pays valid claims and then collects that amount back from your business.

Official and Additional Resources for the California Disposal Fees Guarantee of Payment Bond:

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