Surety / Bonding

Basic explanation of bonding

A bond is a promise by a third party (the Surety) to pay – or sometimes perform – if a contractor fails to complete a contract. A bond can also help protect an owner from liens against the owner’s property if the contractor fails to pay workers or suppliers.

A bond is a three-way contract. The Surety is almost always a licensed insurance company, although a private person can on some occasions act as Surety. The contractor is called the Principal because the contract is his or her primary responsibility. The Surety and Principal promise, in the bond, that the contract will be performed according to its terms. Essentially, the Surety promises that if the contract is not performed, it will pay damages if the Principal cannot.

The Obligee or Beneficiary benefits from the promise described in the bond. The Principal and Surety both sign the bond; the Obligee does not. Nevertheless, the Obligee also has obligations under the bond. If the Obligee does not perform his or her own obligations under the contract, neither the Principal nor the Surety is bound. The bond is not an insurance policy. It merely provides an extra level of financial resource behind the contractor, a place to turn if the contractor cannot meet contractual obligations through his or her own assets.

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Types of Contract Bond
  • Bid Bond
  • Consent of Surety / Agreement to bond
  • Performance bond
  • Supply bond
  • Labour & material payment bond
  • Maintenance Bond
  • Lien Bond / Release of Lien Bond

Types of Commercial Bond
  • Administration Bond
  • A.T.A Carnet Bond
  • Administrator De Bonis
  • Administrator Pendente Lite
  • Administrator With Will Annexed Bond
  • Agricultural Products Bond
  • Air Charter Bond
  • Appeal Bond
  • Appeal Customs Bond
  • Auctioneer Bond
  • Automobile Vehicle Registration Bond
  • Bailiffs Bond
  • Bonded Air Carrier
  • Bonded Freight Forwarder
  • Bonded Highway Carrier
  • Charitable Promotion Bond
  • Collection Agency Bond
  • Committee Bond
  • Consumer Protection Act Bond
  • Contractor’s Licence Bond
  • Court Bonds
  • Customs Bonded Warehouse
  • Customs Brokers Licence Bond
  • Customs Sufferance Warehouse Bond
  • Denatured Alcohol Bond
  • Direct Sellers Bond
  • Driver Training School Bond
  • Duty-Free Shop Bond
  • Electricity Bill Payment Bond
  • Employment Agency Bond
  • Excise Tax Act Bonds
  • Foreign Executor Bond
  • Farm Machinery Bond
  • Fuel Tax Bond
  • Gas Contractor’s Bond
  • General Excise Carrier Bond
  • Goods & Services Tax Bond
  • Guardian Bond
  • Grain Bond
  • Health Studio Bond
  • Highway Traffic Act Bond
  • Lease Agreement Bond
  • Livestock Dealers & Products Bond
  • Load Broker Bond
  • Lost Instrument Bonds
  • Lottery Bond
  • Market Intermediaries In Damage Insurance Bond
  • Milk Board Bond
  • Missing Heir Bond
  • Mortgage Brokers Bond
  • Nonresident G.S.T. Bond
  • Payment Guarantee Bond
  • Plumber’s Bond
  • Pre-Arrangement Funeral Service Act Bond
  • Private Investigator & Security
  • Private Vocational School Bond
  • Probate Bonds
  • Real Estate Broker Bonds
  • Release Of Goods Bond
  • Replevin Bond
  • Road Cut Permit Bond
  • Roofing Contractors Bond
  • Sand Pit Bond
  • Securities Act Surety Bond
  • Sewertappers Bond
  • Single Trip Customs Bonds
  • Solid Waste Management Bond
  • Sub-Division Bond
  • Temporary Importation Of Articles Bond
  • Tobacco Sales Tax Bond
  • Transponder Bond
  • Travel Agents Bond
  • Trustee In Bankruptcy Bond
  • Used Car Dealer Bond
  • Waiver Of Probate Bond

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Surety Sources

(General – Not necessarily accessible by TCIM)

Other Resources

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