Bonds and surety

Commercial surety bonds

Licence and miscellaneous surety bonds

Government regulatory authorities and some businesses require that a bond be posted before granting permission, usually in the form of a licence, to engage in the activities they regulate. The intent is that the applicant will honour their commitments rather than risk personal monetary loss by forfeiting the money represented by the bond.

Service bonds

Service bonds cover situations where a business owner (principal) is required to provide a bond to a 3rd party (obligee) guaranteeing performance of services without loss to that 3rd party through dishonest or criminal acts committed by the principal or its employees.

Administration or fiduciary bonds

Administration or fiduciary bonds are required when the court appoints a representative to administer the estate when an individual dies without leaving a will. A bond is also required when the court appoints a representative to administer the trust of an infant or the affairs of a mentally incompetent, dependant adult.

Lost-securities bonds

A lost-securities bond enables a person to secure duplicates of valuable documents that have been mislaid, stolen or destroyed by causes such as fire, by presenting the bond to the life insurance company, bank or industrial concern that originally issued the lost document.