Prepaid Entertainment Bond Report

When is Notice to the Attorney General’s Office Required?

North Carolina law states that any business that collects any payments more than 31 days in advance (e.g. a client pays for 6 months or a year in advance) or collects any other non-recurring payments (e.g. a sign-up fee or annual fee), needs to obtain a surety bond or letter of credit. Most insurance companies will be able to help the business obtain the correct bond. The business may opt to provide a letter of credit, which must come from a FDIC bank.

What Information Should be Included?

After obtaining the surety bond or letter of credit, the business should:
1. Complete and submit the form below.
2. Send the original surety bond or letter of credit to the North Carolina Department of Justice.
3. Send a notarized sworn statement attesting to the outstanding liabilities to the NC Department of Justice. NC law requires that businesses submit this sworn statement attesting to the outstanding liabilities twice a year. New businesses must still send the sworn statement with its bond, even if the outstanding liability at that time is still zero.

Surety bonds, letters of credit, and sworn statements should be sent to NCDOJ via mail at

Consumer Protection Division
North Carolina Department of Justice
P.O. Box 629
Raleigh, NC 27602

If the business does not collect any payments more than 31 days in advance and has no other non-recurring fees, the business would be exempt from the bond requirement. Exempt businesses should still complete the form below and return a notarized sworn statement choosing the exempt option.