Surety Bond Encyclopedia

Encroachment Permit Bond - Town of Surf City, NC in North Carolina

Brief Summary

Before anything else, get the bond amount for your encroachment permit from the Town of Surf City. With that figure in hand the bond is a quick filing, and it lets you open the right of way without tying up cash in a deposit.

The Town of Surf City requires a surety bond with an encroachment permit to dig, place utilities or otherwise work in a town street, sidewalk or right of way. The bond runs to the Town of Surf City and guarantees that the work follows the permit and that the street is restored. Get the required bond amount from the town before the bond is written.

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How to Apply for a Encroachment Permit Bond:

  • Get the required bond amount for your encroachment permit from the Town of Surf City.
  • Legal name of the permit applicant exactly as it appears on the permit application.
  • Owner name, home address and Social Security number for the surety's credit review.
  • Short description of the work and its location in the right of way.
  • Complete the bond application, pay the premium and receive the executed bond.
  • File the bond with the Town of Surf City with your encroachment permit application.

Detailed Information About the North Carolina Encroachment Permit Bond:

Start with the amount

The bond amount is the one detail to settle first. Ask the Town of Surf City for the amount required on your encroachment permit, and order the bond in exactly that figure so it is not sent back for a rider.

Where the requirement comes from

North Carolina gives each city general authority and control over its public streets, sidewalks and alleys under N.C. Gen. Stat. 160A-296, including in subsection (a)(6) the power to regulate, license and prohibit digging in the streets, sidewalks or alleys. Surf City exercises that power in Chapter 16 of its Code of Ordinances, Streets and Sidewalks, where Article II governs excavations and embankments. The encroachment permit and its bond are how the town makes sure a contractor or owner who opens the right of way puts it back.

What the bond guarantees

The Town of Surf City is the obligee. The bond guarantees that the permitted work is done according to the permit and town standards, and that pavement, sidewalks, shoulders and drainage disturbed by the work are restored. If the permit holder walks away or the restoration fails, the town can claim against the bond to pay for the repair. The surety pays a valid claim and then collects that amount back from the permit holder.

Who posts it

The party that holds the encroachment permit posts the bond. That is usually the contractor doing the work, a utility installer, or a property owner building within the right of way. The name on the bond should match the permit application exactly.

How premium is set

Premium is charged on the bond amount the town sets. The surety looks at the principal's credit, time in business and the kind of work being done in the right of way.

Before the bond is issued

Confirm the bond amount, the required bond form and the filing steps with the Town of Surf City before the bond is written.

Eligibility and Requirements for a North Carolina Encroachment Permit Bond:

  • Town of Surf City named as obligee.
  • Bond amount as required by the town for your permit.
  • Principal name matching the encroachment permit application.
  • Work performed under Chapter 16 of the Surf City Code of Ordinances.
  • Restoration of any street, sidewalk or drainage disturbed by the work.

North Carolina Encroachment Permit Bond FAQs:

How much is the Surf City encroachment bond?

Ask the Town of Surf City for the amount required on your permit, then order the bond in that exact amount. Premium is charged on that figure.

What gives the town the authority to require it?

N.C. Gen. Stat. 160A-296(a)(6) gives North Carolina cities the power to regulate, license and prohibit digging in streets, sidewalks and alleys. Surf City regulates excavations in Article II of Chapter 16 of its Code of Ordinances.

Who is protected by the bond?

The Town of Surf City. If the work is left unfinished or the right of way is not restored, the town can claim against the bond to pay for repairs. You repay the surety for any claim it pays.

Official and Additional Resources for the North Carolina Encroachment Permit Bond:

All Town of Surf City, NC bonds · All North Carolina surety bonds