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Do surety bonds have a time limit?
Yes. The term is related to the what the surety bond is guaranteeing. Most surety bonds are annual.
What is professional surety?
The term professional surety can be applied to an individual who is licensed and experienced in providing surety bond support. It can also allude to the corporate sureties that underwrite and provide the actual surety bonds.
What is surety bonds?
A surety bond is a contract among at least three parties:The principal - the primary party who will be performing a contractual obligationThe obligee - the party who is the recipient of the obligation, andThe surety - who ensures that the principal's obligations will be performed.Through this agreement, the surety agrees to uphold - for the benefit of the obligee - the contractual promises (obligations) made by the principal if the principal fails to uphold its promises to the obligee. The contract is formed so as to induce the obligee to contract with the principal, i.e., to demonstrate the credibility of the principal.There are two main categories of bond types: contract bonds and commercial bonds. Contract bonds guarantee a specific contract. Examples include performance, bid, supply, maintenance and subdivision bonds. Commercial bonds guarantee per the terms of the bond form. Examples include license & permit, union bonds, etc.Suretyship bonds originated hundreds of years ago as a mechanism through which trade over long distance could be encouraged. They are frequently used in the construction industry: in order to obtain a contract to build the project, the general contractor (and often the sub-contractors as well) must provide the owner a bond for its performance of the terms of the contract. Conversely, owners and contractors may also provide payment bonds to ensure that subcontractors and suppliers are paid for work done.Under the Miller Act, payment and performance bonds arerequired for general contractors on all U.S. federal government construction projects where the contract price exceeds $100,000.00.Surety bonds are also used in other situations, for example, to secure the proper performance of fiduciary duties by persons in positions of private or public trust.A key term in nearly every surety bond is the penal sum. This is a specified amount of money which is the maximum amount that the surety will be required to pay in the event of the principal's default. This allows the surety to assess the risk involved in giving the bond; the premium charged is determined accordingly.If the principal defaults and the surety turns out to beinsolvent, the purpose of the bond is rendered nugatory. Thus, the surety on a bond is usually an insurance company whose solvency is verified by private audit, governmental regulation, or both.The principal will pay a premium (usually annually) in exchange for the bonding company's financial strength to extend surety credit. In the event of a claim, the surety will investigate it. If it turns out to be a valid claim, the surety will pay it and then turn to the principal for reimbursement of the amount paid on the claim and any legal fees incurred.A bail bond is a type of surety bond used to secure the release from custody of a person charged with a criminal offense. Under such a contract, the principal is the accused, the obligee is the government, and the surety is the bail bondsman.Examples of Surety Bonds:Contractor License and PermitCourtCustomsLost SecuritiesMoney TransmittersMortgage brokersMotor Vehicle DealersPatient Trust FundsProbatePublic officialTax bondsTelemarketingSubdivisionUtility depositWage and Welfare/Fringe Benefit (Union)Public WarehouseSupply bonds Online Transaction Supply BondsSelf--Insured Workers compensationInsurance Company QualifyingReclamation
What are the synonyms of the term 'bondsman'?
The term 'bondsman' means someone who acts in a capacity to guarantee the funding for a person's bail within a court of law. This makes the bondsman summarily become responsible for the person's debts.
What is an surety bond?
A surety bond is a contract among at least three parties: The principal - the primary party who will be performing a contractual obligation The obligee - the party who is the recipient of the obligation, and The surety - who ensures that the Principal's obligations will be performed. Through this agreement, the surety agrees to uphold - for the benefit of the obligee - the contractual promises (obligations) made by the principal if the principal fails to uphold its promises to the obligee. The contract is formed so as to induce the obligee to contract with the principal, IE, to demonstrate the credibility of the principal. There are two main categories of bond types: contract bonds and commercial bonds. Contract bonds guarantee a specific contract. Examples include performance, bid, supply, maintenance and subdivision bonds. Commercial bonds guarantee per the terms of the bond form. Examples include license & permit, union bonds, etc. Surety bonds originated hundreds of years ago as a mechanism through which trade over long distance could be encouraged. They are frequently used in the construction industry: in order to obtain a contract to build the project, the general contractor (and often the sub-contractors as well) must provide the owner a bond for its performance of the terms of the contract. Conversely, owners and contractors may also provide payment bonds to ensure that subcontractors and suppliers are paid for work done. Under the Miller Act, payment and performance bonds are required for general contractors on all U.S. federal government construction projects where the contract price exceeds $100,000.00. Surety bonds are also used in other situations, for example, to secure the proper performance of fiduciary duties by persons in positions of private or public trust. A key term in nearly every surety bond is the penal sum. This is a specified amount of money which is the maximum amount that the surety will be required to pay in the event of the principal's default. This allows the surety to assess the risk involved in giving the bond; the premium charged is determined accordingly. If the principal defaults and the surety turns out to be insolvent, the purpose of the bond is rendered nugatory. Thus, the surety on a bond is usually an insurance company whose solvency is verified by private audit, governmental regulation, or both. The principal will pay a premium (usually annually) in exchange for the bonding company's financial strength to extend surety credit. In the event of a claim, the surety will investigate it. If it turns out to be a valid claim, the surety will pay it and then turn to the principal for reimbursement of the amount paid on the claim and any legal fees incurred. A bail bond is a type of surety bond used to secure the release from custody of a person charged with a criminal offense. Under such a contract, the principal is the accused, the obligee is the government, and the surety is the bail bondsman. Examples of Surety Bonds: •Contractor License and Permit •Court •Customs •Lost Securities •Money Transmitters •Mortgage brokers •Motor Vehicle Dealers •Patient Trust Funds •Probate •Public official •Tax bonds •Telemarketing •Subdivision •Utility deposit •Wage and Welfare/Fringe Benefit (Union) •Public Warehouse •Supply bonds ◦Online Transaction Supply Bonds •Self--Insured Workers compensation •Insurance Company Qualifying •Reclamation Examples of fidelity bonds: •ERISA •Business Service Bonds •Public Official •Manufacturers •Small Businesses •Non-Profit Organizations •Real Estate Managers •Title Agents •Financial institutions •Precious Metal Exposures •Armored Car
How much of the 10 percent does the bail agent give the bonding company?
There are several types of bail agents or bondsmen as they are commonly called. The most common bondsman works unders a surety (insurance) company. They are licensed insurance agents. The bondsman will pay any where from 10 to 20% of the bail bond premium fee , ( the 10% of the face value of the bail bond), they collect from a client, to their surety company. In other words, the bondsman gets to keep 80 to 90 percent of the bail bond premium fee they collect. The rest goes to the surety company. Another type of bondman is a professional of property bondsman. In this case the bondsman pledges real property with the state of county that they wish to operate in, as collateral to gaurantee that they can pay off any bond they write if the defendant skips bail. This bondsman, keeps the full amount of the bail bond premium fee that he or she collects. The last and least common type of bondsman is one that pledges cash or securities with the state or county they operate in in. Again, this collateral is used to guarantee the ability of the bondsman to pay off a bail bond if the defendant fails to appear and can not be located and returned to court or jail. Since this bondsman is pledging his or her own money, they keep the full amount of the bail bond premium fee collected. The term bondsman is gender neutral. Slightly over half of the bail agents in the U. S. are women.
What is a sentence with the word bail?
Bail faster! The sharks are closing in! Can you bail me out with a short-term loan? Well men, as we have now lost all engines, it is time to bail out.
Are short term bonds less risky then long term bonds?
Generally, yes.
What does the term personal recognize mean?
The term personal recognizance refers to a specific bond that is used within the court system. A person who is granted personal recognizance is allowed to post bail until the date of their trial.
What does the term closed bond mean?
A closed bond refers to a type of bond issuance where the company or entity offering the bond limits the number of bonds issued. Once the predetermined number of bonds is sold, no additional bonds will be offered for sale, hence the term "closed." This is in contrast to an open bond issuance, where bonds are continuously available for purchase.
If there is a decline in interest rates which would you rather be holding long term bonds or short term bonds?
God
What does the term PB in international trading mean?
Performance bond A surety bond between two parties, insuring one party against loss if the terms of a contract are not fulfilled. Usually part of a construction contract or supply agreement.
