# Fraud bond

A term used when buying driving school.

California requires driving schools to post a ten thousand dollar bond against student fraud losses.

The condition matters more than the amount. California requires a school owner to file a bond conditioned that the applicant will not practice any fraud or make any fraudulent representation causing a student a monetary loss. It answers for a cheat, not for lessons a solvent school simply stopped delivering, so prepaid packages sit behind nothing. Neither license survives a sale. The school owner's license is automatically cancelled when the person designated as licensee changes or the bond lapses, and the owner must notify the state within ten days of any ownership change. Each instructor holds a separate personal license that is theirs and not the school's.

Part of: Buying a Driving School (https://searchspheresource.com/guides/buying-a-driving-school)

Source: https://searchspheresource.com/guides/buying-a-driving-school/terms/fraud-bond
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt