Commercial surety bonds are basically a form of insurance that hedges against losses caused by not qualified business people or by qualified business people who don’t follow the law of the state, or the federal law. For an instance, a contractor may find that a client files a claim against him for allegedly not obeying proper contracting laws. In such a case, the surety would pay the claim if it was found to be lawfully-begotten. Some common examples of commercial bonds consider license and permit bonds, public official bonds, probate bonds and other court bonds.
- Administration Bond: An administrator bond is a form of insurance that assures an individual who is the administrator of a will acts legally and ethically and secures those in the will against fraud. It is often written as a bond of administrator or executor and is likely similar to an executor bond. Before administrators purchase a bond from an agency, they must allow themselves to undergo a credit check, have their applications approved, and submit themselves for other screening procedures.
- Appeal Bond: When a plaintiff wins his case, judgment is passed on the defendant and it is often the defendant’s accountability to pay monetary dues to the plaintiff. The defendant has an alternative to appeal the judgment, but he or she must receive an appeal bond before court process.This ensures that the appellant will be able to provide the judgment even if he goes bankrupt during the appeal process. Usually, these bonds are needed without exception, but they enable the defendant to seek lesser judgment.
- Auction Bond: An auctioneer must buy a form of insurance policy called auction bond before dealing with auctions. This commercial surety bond protects the customer by assuring the items auctioned are rightly represented and that no illegal or unethical conduct occurs during the transaction. Again, before purchasing this bond, auctioneers must undergo all the formal proceedings.
- Court Bond: A court bond is a general term used to describe many types of bonds that may be required in court proceedings.These court bonds help protect participants in legal matters against fraudulent activities or financial transactions. Before those in a legal situations purchases a surety bond via a bonding agency, they must submit themselves to a surety check.
- Mortgage Broker Bond: A mortgage broker bond is a form of bonding agreement that protects a customer from unlawful activities on the part of the mortgage broker. Before obtaining a license, a broker dealing with mortgage bond must apply for and receive a surety bond. Some actions that are bonded by these bonds include lending to risky customers, fraudulent transactions or lending more money that the customer can pay back.
