Example Of Surety
Description
How to fill out Surety Agreement?
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FAQ
There are 4 main types of surety bonds. Contract surety bonds and commercial surety bonds protect private and public interests and are the most common. Fidelity surety bonds and court surety bonds protect against theft and litigation and are less common.
A surety is a person or party that takes responsibility for the debt, default, or other financial responsibilities of another party.
These bond types are also referred to as ?commercial bonds" or ?business bonds." Examples of license and permit surety bonds include auto dealer bonds, mortgage broker bonds, and collection agency bonds.
One of the most common uses of surety bonds is to protect the public, by guaranteeing important obligations will be fulfilled. For example, a construction surety bond will ensure that a building construction project that benefits the public will be completed.
How Surety Bond Pricing is Calculated. Surety bond pricing is based on a percentage of the full bond amount being required (called the premium), which is usually anywhere between 1-10%. The premium is based on your financial strength, e.g. personal credit.