Certificate transfer

Definition

The rare passenger authority that travels with the business, on application and a fee.

Why It Matters

California splits its charter-party licenses in two and the halves behave in opposite ways. The lettered certificates, Class A, B and C, may be transferred by filing a transfer application, which costs $300 and makes the authority one of the few assets in this trade that genuinely survives a sale. The permit types do not transfer at all, so a seller holding one is selling vehicles and a customer list while the buyer applies from scratch. Ask which the seller holds before valuing the book, and read the insurance schedule beside it: the state scales coverage by seating capacity, from $750,000 at eight seats or fewer to $5,000,000 at sixteen or more.