Get An Instant Quote on New Jersey Turnpike Toll (E-Z Pass) Bond
Certain businesses who desire a credit agreement with the New Jersey Turnpike Authority (NJTA) need to provide a New Jersey Turnpike Toll Bond, also called a New Jersey E-Z Pass Bond. These bonds can be purchased online. Learn what they guarantee and how to obtain one.
A New Jersey E-Z Pass Bond is a type of surety bond that guarantees that a business (principal) will pay any invoice due to the New Jersey Turnpike Authority (the obligee) for amounts due while using a New Jersey E-Z Pass Tag. The bond guarantees that payment will be made within 25 days of the invoice date for amounts due. The bond acts as a form of financial protection for the New Jersey Turnpike Authority to help ensure that they get paid from the business.
Businesses can register and request an E-Z Pass Credit Agreement with the New Jersey Turnpike Authority. As part of this agreement, the business may be asked to post a New Jersey Turnpike Toll Bond (E-Z Pass). Businesses will first need to register and complete the application.
The NJTA sets the amount of the E-Z Pass Bond. The amount is based on the business’ estimated monthly tolls. The monthly tolls vary depending on the type of fleet, the number of axles, weight and other factors. Generally, these amounts range from $1,000 – $50,000.Â
A New Jersey Turnpike Toll Bonds depends on the credit and financial strength of the business. Strong businesses may pay as little as 0.5% while others may pay as much as 3%. Most applicants can purchase a bond in our online system for 2%. This bond premium is due each year until the bond is canceled. You can learn more about surety bond costs and how they are determined here.
The business needing the bond is referred to as the principal. The business provides payment and indemnity to a third-party surety bond company. In return, the bond company provides a financial guarantee to the New Jersey Turnpike Authority promising to pay the amounts owed if the principal does not.
Should the principal not pay their invoice, the NJTA can make a claim against the bond company and the bond company will have to make payment.Â
Claims should be avoided at all costs. If the surety bond company does pay a claim, they will seek to be reimbursed by the principal business under the indemnity agreement. Businesses should understand that surety is not insurance, and closely resembles a credit product. You can read more about surety versus insurance here.
Most New Jersey Turnpike Toll Bonds (E-Z Pass Bonds) can be purchased online in minutes. Larger bonds of more than $10,000 will require a credit check of the business owner, while smaller amounts can be purchased instantly without a credit check.Â
Businesses seeking the best rates and terms will need to complete an application and provide financial statements.Â
Credit challenges can happen to anyone. Generally, even those with credit challenges can obtain a New Jersey E-Z Pass Bond. Axcess Surety works with the top bond companies and our surety experts can get approvals for most applicants, even when they have credit challenges. Those applicants should be prepared to provide additional information and possibly pay higher rates.
A New Jersey E-Z Pass Bond (Turnpike Toll) must be in place as long as the credit agreement is in place. However, the surety may cancel the bond anytime by providing 60-day notice to the obligee. The cancellation must be sent by registered mail to the following:
Comptroller
New Jersey Turnpike Authority
Woodbridge, NJ 07095-5042
AND
New Jersey E-Z Pass Customer Service Center
P.O. Box 52006
Newark, NJ 07101-8206
It is important to keep in mind that the surety and the principal will still be liable for any amounts that were due before the cancellation AND during the 60-day notice period. The bond form also requires the surety and principal to be responsible for amounts that may become due for the E-Z Pass Tags issued under the bond. Therefore, it is important that the E-Z Pass Tags be returned with the cancellation.
New Jersey E-Z Pass Bonds are required for businesses wishing to enter into a credit agreement with the New Jersey Turnpike Authority. Fortunately, these bonds are easy to obtain for most businesses and can usually be purchased online. New Jersey Businesses can also purchase other bonds online by visiting our New Jersey Surety Bond Page. Contact the surety bond experts at Axcess Surety today for all your bond needs and questions.
Obtain a free copy of a New Jersey Turnpike Toll bond form by clicking on the image:
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Often, New Jersey E-Z Pass Bonds are confused with New Jersey Turnpike Authority Revenue Bonds. These are two very different things. While the E-Z Pass Bond is needed by some businesses to use E-Z Pass Tags on certain roads, the Revenue Bonds are an investment used to fund the construction and maintenance of the roads.
Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.
