Form SFSB-408-2 Discount Buying Organization Surety Bond - California

What Is Form SFSB-408-2?

This is a legal form that was released by the California Secretary of State - a government authority operating within California. As of today, no separate filing guidelines for the form are provided by the issuing department.

FAQ

Q: What is Form SFSB-408-2?
A: Form SFSB-408-2 is the Discount Buying Organization Surety Bond in California.

Q: What is a Discount Buying Organization?
A: A Discount Buying Organization is a company that offers its members the opportunity to purchase products or services at discounted prices.

Q: Why is a surety bond required for a Discount Buying Organization?
A: A surety bond is required to ensure that the Discount Buying Organization operates in compliance with the law and fulfills its obligations to its members.

Q: How does the surety bond protect consumers?
A: The surety bond provides financial protection for consumers in case the Discount Buying Organization fails to fulfill its obligations, such as failing to provide the promised discounts or refunding membership fees.

Q: How much is the bond amount for Form SFSB-408-2?
A: The bond amount for Form SFSB-408-2 varies based on the number of members. It can range from $5,000 to $100,000.

Q: Who needs to submit Form SFSB-408-2?
A: Discount Buying Organizations in California are required to submit Form SFSB-408-2 along with the required surety bond.

Q: Are there any penalties for not submitting Form SFSB-408-2 and the surety bond?
A: Yes, failure to submit Form SFSB-408-2 and the required surety bond can result in fines, penalties, or even suspension of the Discount Buying Organization's license.

Q: How long does the surety bond need to remain in effect?
A: The surety bond for a Discount Buying Organization needs to remain in effect for as long as the organization is in operation and offering its services to members.

Q: Can the surety bond be canceled or revoked?
A: The surety bond can be canceled or revoked if the Discount Buying Organization fails to comply with the law or fulfill its obligations to its members.