A Collection Agency Surety Bond is required by NCGS 58-70-20(a) for domestic, alien and foreign collection agencies to legally conduct business functions in the State of North Carolina. The Collection Agency Surety Bond is made in favor of the State of North Carolina and issued for the benefit of any person, firm or corporation engaged by the bonded principal in the business of collection of accounts. The purpose of the surety bond is to indemnify clients for losses incurred as a result of funds not accounted for by the bonded principal from the date of issuance of the permit to the principal until July 1st of the following year.
