Surety Bond Encyclopedia

Vendor ($1,000) Bond - Potsdam, NY in New York

Brief Summary

The Village of Potsdam will not license you to peddle, vend or solicit orders until it has $1,000 in security on file. A surety bond covers that for a small premium instead of leaving $1,000 in cash with the Village, which under the code it can hold for 90 days after your license expires.

Chapter 128 of the Village of Potsdam Code requires every applicant for a vendor, hawker, peddler or solicitor license to file a $1,000 cash deposit or a $1,000 surety company bond with the application. The bond guarantees delivery of goods or services ordered, or a refund of advance payments, and reimbursement for fraud or misrepresentation in any sale. Licenses cost $25 a year, expire every January 1, and the bond must stay in force for 90 days after the license expires.

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How to Apply for a Vendor ($1,000) Bond:

Check the exemptions in section 128-2 of the Village Code before applying.
Complete the Village of Potsdam license application with vehicle, merchandise, distribution method, name, address, age and the business you represent.
Get a certificate from the Sealer of Weights and Measures if you use any scale or measuring device.
Buy a $1,000 surety bond naming the Village of Potsdam as obligee.
File the application, bond and any certificate with the Village Clerk and pay the $25 annual license fee.
License each employee or agent who sells for you at $10 per person.
Renew before January 1 each year, when every license automatically expires.

Detailed Information About the New York Vendor ($1,000) Bond:

Who needs the bond

Section 128-3 of the Village of Potsdam Code makes it unlawful to act as a vendor, hawker, peddler or solicitor inside the village limits without a license from the Clerk. That covers anyone who sells or offers goods from place to place and anyone who goes door to door taking orders for goods. Section 128-5 then requires every applicant, whichever of those activities it is, to file a $1,000 cash deposit or a $1,000 surety company bond with the application.

Who is exempt

Section 128-2 lists the exemptions. They include sales made under a statute or court order, wholesale sales to dealers, persons under 18, farmers and truck gardeners selling products of their own farms or gardens, honorably discharged members of the armed forces holding a license from the County Clerk, berry pickers selling berries they picked, and nonprofit organizations that register each year with the Clerk. If you are not on that list, you post the bond.

What the bond guarantees

The bond must be approved by the Village Attorney as to form and surety. It is conditioned on making final delivery of the goods or services ordered on the terms of the order, or refunding any advance payment if delivery fails, and on reimbursement for any fraud, misrepresentation or claim arising from a sale. Anyone harmed by a licensee can sue on the bond for money or damages.

The 90 day tail

This is the part people miss. Section 128-5 keeps the bond in full force for 90 days after the license expires, unless the Village Board releases it sooner. Because licenses under section 128-10 expire on January 1 following issuance, plan your bond term to cover the license period plus that 90 day window.

Fees and filing

Section 128-12 sets the license fee at $25 per year, issued to individuals only. Each employee or agent who sells on your behalf also needs a license, at $10 per person. The application must list your vehicles, what you are selling, how you will distribute it, your name, address and age, the business you represent, and how long you want the license. If you use scales or measuring devices, section 128-4 requires a certificate from the Sealer of Weights and Measures. The license takes effect three days after the Clerk issues it. Selling without a license carries a fine of not less than $250, up to 15 days in jail, or both, under section 128-17.

How premium is set

The surety sets the premium from the $1,000 bond amount and a review of the applicant's credit. Confirm the current application and filing steps with the Village Clerk at 2 Park Street before the bond is issued.

Eligibility and Requirements for a New York Vendor ($1,000) Bond:

Bond amount of exactly $1,000, or a $1,000 cash deposit instead.
Village of Potsdam named as obligee.
Bond form and surety approved by the Village Attorney.
Bond conditioned on delivery or refund and on reimbursement for fraud or misrepresentation, as written in section 128-5.
Bond kept in force for 90 days after the license expires.

New York Vendor ($1,000) Bond FAQs:

How much is the bond and can I post cash instead?

The bond is $1,000. Section 128-5 lets you file a $1,000 cash deposit instead, but the Village keeps that deposit for 90 days after your license expires unless the Village Board releases it sooner.

Does the bond apply to door to door solicitors taking orders?

Yes. Section 128-5 applies to every applicant, whether for a vendor, hawker, peddler or solicitor license.

When does the license expire?

On January 1 following the date of issuance, under section 128-10. The license fee is $25 per year.

Who can make a claim on the bond?

Any person harmed by a licensee's failure to deliver, failure to refund an advance payment, or fraud or misrepresentation in a sale can bring an action on the bond for money or damages.

Are farmers or nonprofits exempt?

Farmers and truck gardeners selling their own products are exempt. Nonprofit organizations are exempt if they register each year with the Village Clerk.