California 643K Subsidy Bond
AmeriPro Surety Bonds | 844-589-9732
CA DRE – 643K Surety Bond
The California Department of Real Estate requires certain entities to obtain a 634K subsidy surety bond.
This surety bond is required by the state DRE to keep you in compliance with §2792.10 of the California Code of Regulations.
This surety bond is therefore required of subdividers who are providing goods and services to an Association and who will therefore:
- Contract with the Association in a manner acceptable to the Commission;
- Provide the Association a copy of the contract;
- Provide a monthly accounting to the Association; and, if it is other than cash, also provide an accounting of the value of goods and services provided.
The surety bond will therefore serve as a financial guarantee of your compliance with these regulations.
Qualifying and the Premium
Qualifying for the California 643K subsidy bond of the California Department of Real Estate is by completion of an application and a standard credit check inquiry. It should be noted that to be approved for this bond through our agency, good credit is required for approval.
For bonds that are especially large, additional information, including a financial statement, may also be requested.
When you call us, we’ll ask you the following: Your company name, address, business structure (LLC, corporation) and the date of the Subsidy Security Agreement.
Thereafter, we’ll request your name as Principal, address, and social security number. We’ll also ask if you own real estate.
Finally, we’ll ask for the name and address of the obligee. The obligee is the entity which is requiring you to obtain the surety bond. In the case of your 643K, it is likely the Association.
Upon approval of your credit, the premium granted is at 1.5%, annually.
Once payment is received, your bond is issued and mailed to you by the following business day. Upon receipt of your bond, you will sign it as Principal and then file it with the obligee.
The Term of Your 643K Bond
Your California 643k surety bond is active for one year from the date of issuance. The premium will renew on the anniversary of your bond’s issuance.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, court, and probate surety bonds in California and nationwide.
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