| Bonds
Bonds are typically distinguished between Surety Bonds, which guarantee the performance of a contract, and Fidelity Bonds, which protect against the dishonesty of employees or persons occupying positions of trust. The remainder of bonds falls into the Specialty & Miscellaneous category. We offer a variety of bonds for your business needs. • Surety Bonds • Bid Bonds • Performance Bonds • Motor Vehicle Dealer Bonds • Fidelity Bonds • Employee Dishonesty Bonds • ERISA, Welfare & Pension Bonds • Business Service Bonds • Judicial Bonds • License & Permit Bonds • Probate Bonds • Specialty & Miscellaneous Bonds • Public Official Bonds • Notary Public Bonds • Foreign Adoption Bonds • Financial Guarantee Bonds A surety bond is a contract among at least three parties: • The obligee - the party who is the recipient of an obligation • The principal - the primary party who will be performing the contractual obligation • The surety - who assures the obligee that the principal can perform the task A surety bond is a promise to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal's failure to meet the obligation. A surety or guarantee, in finance, is a promise by one party (the guarantor) to assume responsibility for the debt obligation of a borrower if that borrower defaults. The person or company that provides this promise, is also known as a surety or guarantor. The situation in which a surety is most typically required is when the ability of the primary obligor or principal to perform its obligations under a contract is in question, or when there is some public or private interest which requires protection from the consequences of the principal's default or delinquency. In most common law jurisdictions, a contract of suretyship is subject to the statute of frauds (or its equivalent local laws) and is only enforceable if recorded in writing and signed by the surety and the principal. If the surety is required to pay or perform due to the principal's failure to do so, the law will usually give the surety a right of subrogation, allowing the surety to "step into the shoes of" the principal and use his (the surety's) contractual rights to recover the cost of making payment or performing on the principal's behalf, even in the absence of an express agreement to that effect between the surety and the principal.
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