Tennessee Performance Bond

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Multi-State
Control #:
US-1029BG
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Word; 
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Description

A joint venture is very similar to a partnership. In fact, some States treat joint ventures the same as partnerships with regard to partnership statutes such as the Uniform Partnership Act. The main difference between a partnership and a joint venture is that a joint venture usually relates to the pursuit of a single transaction or enterprise even though this may require several years to accomplish. A partnership is generally a continuing or ongoing business or activity. Most Courts hold that joint ventures are subject to the same principles of law as partnerships. A joint venture will last generally as long as stated in the joint venture agreement. If the joint venture agreement is silent on this, it can be terminated by any participant unless it clearly relates to a particular transaction.
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FAQ

One key difference between performance bonds and surety bonds is the scope of their coverage. Performance bonds only cover a specific project, while surety bonds can cover multiple projects or ongoing business activities.

Tennessee certificate of title bond costs start at $100 for the state-required 3-year term. Exact costs vary depending on the surety bond amount required by the Department of Revenue. Bond amounts less than $10,000 cost $100. Bond amounts from $10,001 to $25,000 cost $10 for every $1,000 of coverage, starting at $100.

A surety bond protects you against the costs of claims about shoddy, incomplete work as well as theft and fraud. You may need to purchase a bond as a means of getting a business license or permit.

Surety bond premiums (the amount you pay) are often calculated as a percentage of the total bond amount, usually between 0.5% and 5% of the bond amount for applicants with good credit, and between 5% up to as much as 20% of the bond amount for applicants with poor credit.

A performance bond is a type of contract construction bond that guarantees a contractor will complete a project ing to the terms outlined in a contract by the project owner, also called the obligee. The obligee can be a city, state, or local government, as well as the federal government or a private developer.

You must furnish the complete name and physical mailing address of your two sureties on the Surety Bond Application. You must also furnish General Tax Certification (?GTC?) (tax cards) (i.e. a copy of their most recent property tax bill showing their property tax information).

The contractor will engage with a bond provider, or surety, to provide a performance bond for that project. In order to get a performance bond, the contractor agrees to pay the surety a small percentage of the total bond amount, usually between 1% and 4%.

Title Agent Surety Bond Bond NameCoverage AmountCost (Annual Premium)Collection Agency Bond$15,000-$25,000$150-$250*Contractor License Bond$10,000-$50,000$100-$500Home Improvement Contractor Bond$10,000$100Motor Vehicle Dealer Bond$50,000$875 (two years)3 more rows

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Tennessee Performance Bond