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North Carolina bonds

North Carolina — Preneed Establishment Bond

Applying for a new North Carolina preneed funeral establishment permit? Prepare a bond of at least $50,000 naming the North Carolina Board of Funeral Service as obligee/trustee. The Southern Agency’s purchase route opens the Propeller application.

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Recorded state
North Carolina
Bond type
Funeral / Cremation Services Bond
Category
Professional & occupational licenses

What this bond does

This bond accompanies the establishment’s preneed licensing application. It is not the individual salesperson’s license or the establishment’s general operating permit.

Who needs it
Funeral establishments seeking new preneed authorization and establishments subject to a Board-directed bonding requirement after a qualifying license lapse or termination. Ordinary late renewal and new licensure are not interchangeable statuses.
Who it protects
The Board’s posted form binds the principal to faithful performance and compliance with the laws and ordinances governing the license. It names the Board as obligee; it does not promise an unlimited refund or replace the other preneed licensing requirements.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Use the Board-required duration, not the annual permit date

Section 90-210.67(b) ordinarily requires at least two years of security for the new-license circumstances it describes. The Board may require five years, may reduce the period to no less than one year from original issuance after a satisfactory solvency showing, and may extend beyond five years after a paid bond claim.

Those are Board-controlled decisions. The license’s December 31 renewal date does not make this automatically a one-year bond, and this public option does not state a term. Bring the actual Board request and current license history.

Keep the establishment application and sales roster together

The posted application asks for the establishment’s legal name, location and ownership. It requires Schedule A listing the sales-license applicants, the bond and corporate/LLC good-standing evidence where applicable; the licensed location manager signs the notarized application.

Purchase Now opens Propeller in a new tab. Match the establishment principal, Board obligee, required sum and duration to the accepted form. After issuance, check the document and include it with the Board application. Notarization of that application does not itself establish a notarization requirement for the separate bond.

Sources

Have these ready

  1. Establishment’s exact legal name, licensed location, ownership and license history.
  2. Board bond request: at least $50,000, accepted form and required duration/dates.
  3. Schedule A sales roster and applicable corporate/LLC good-standing evidence.

Questions about this bond

Is this the individual preneed salesperson’s bond?

This page concerns the establishment’s security. The Board application separately lists the individuals seeking sales licenses on its behalf.

Can I assume one year because the license renews annually?

No. The statute sets a separate bonding period and gives the Board specific discretion to adjust it. Match the Board’s request rather than treating the annual license date as the bond term.

Should I send the surety bond to the clerk of superior court?

The Board application requires the surety bond with the application and names the Board as obligee/trustee. The statute’s deposit with a county clerk describes a different financial-security alternative, not that surety-bond submission instruction.

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