FAQ

It's a legal document that provides for monetary compensation should there be a failure to perform specified acts within a stated period.

The parties are: 1. The Principal-the party that is bonded. 2. The Obligee-the party receiving the protection of the bond. 3. The Surety-the party making the guarantee through the bond.

It guarantees that the obligation of the Principal will be performed. If not, the Surety guarantees completion.

Any individual, partnership or corporation that meets the standards and requirements of the Surety company.

At SBAI we use something called the "3 C's"-character, capacity and capital. We decide based on the Principal's ability to do the work, past history of work performance and the financial position to carry out future work.

Nearly all types of obligations can be bonded. The most common are contractual performance of a service or payment of a sum of money.

The party that purchases the bond, called the Principal, and the party that requires the bond, called the Obligee, share the benefits of the Surety's guarantee.

The Principal's inability to fulfill the obligation covered by the bond.

A Principal is legally obligated through the Indemnity Agreement to reimburse the Surety company for any loss and expense incurred by the Surety. The Principal's obligation to the surety could exceed the original obligation to the Obligee. The Surety has recourse against the Principal in recovering the loss.

In most cases, only the Obligee can make claims under a bond. The Principal can never make a claim.

No! A Surety bond might be provided by the same companies that write insurance policies, but it is never considered insurance.

There are hundreds of Surety bonds. The most common are Bid, Performance, Payment, Sub-Division, License and Permit, Lost Instrument and Court Bonds.

This bond covers losses that result from dishonest or fraudulent acts of employees covered by the bond.

Call an agency that specializes in bonding. One that knows all of the bond markets. One that can help you cut through the red tape. And one that does the job quickly. Bottom line, call Security Bond Associates, Inc.-The "Bond Aid" People.