Posted: Sat Jul 08, 2006 11:27 am Post subject: Surety Bond
Surety Bond
A contract guaranteeing the performance of a specific obligation. Simply put, it is a three-party agreement under which one party, the surety company, answers to a second party, the owner, creditor or “obligee,” for a third party's debts, default or nonperformance. Contractors are often required to purchase surety bonds if they are working on public projects. The surety company becomes responsible for carrying out the work or paying for the loss up to the bond “penalty” if the contractor fails to perform.
Posted: Thu Jan 24, 2008 1:37 am Post subject: Surety Bond - Bailbonds
Just saw your thread on Surety Bonds. Often times Insurance company will are the underwriters for Bail Bond Companies. Also as your post indicates Surety Bonds are often times required by a counties or town before a particular event can take place. Such as a concert, carnival, county fair, ect.
It is true sometimes a municipality will require a bond to be in place for an event. We often see them for wrestling or boxing events. However, a bail surety bond is a completely different guarantee. Agents that write bail typcially do not write construction/commercial bonds.
