Tennessee-City of Knoxville-Out of State Contractor Bond The City of Knoxville – Out of State Contractor Surety Bond is required by the state of Tennessee City of Knoxville. The minimum amount for this Bond is $500. This Bond is required of principals that have applied for a license to do contracting business in the City of Knoxville, Tennessee. Therefore the principal is required to comply with all rules and regulations of the license including but not limited to the prompt and full payments of all taxes, penalties and interest. The principal will also be required to comply with all local and state laws.