Claims made on 12 New York surety bonds for liquor law violations

liquor law

The New York State Liquor Authority revoked five alcoholic beverage licenses and cancelled 10 more for liquor law violations at a March 16 meeting. The board made a $1,000 claim on the surety bonds of 12 offending businesses.

The New York State Liquor Authority requires all businesses with a retail liquor license to maintain Bond Form L-9 in the amount of $1,000. The authority makes claims on these bonds when a business violates the provisions of the Alcoholic Beverage Control Law.

According to the law, business owners who have had their liquor licenses revoked must wait two years to reapply for a license. Those with cancelled licenses are allowed to reapply immediately, but they will likely face obstacles in getting approved for a new license.

When a claim has been made on a principal’s bond in the past, the business owner often has trouble finding a surety provider that’s willing to issue a new bond. Furthermore, purchasing a bond after a claim has been made on a previous one usually means the business owner will pay a higher premium as the surety takes a greater risk in backing the principal.

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