License and Permit Bond

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What does a license and permit bond guarentee?

[marietta68]

L&P bonds guarantee compliance with the rules and regulations governing the activity being licensed. Some bonds are written directly in favor of the licensing entity (the city, the state, and so on), others include third-party liability that means anyone "injured" by the licensee's failure to observe the rules and regulations may bring action against the bond in his own name.