Surety Bond

1. There are three categories of surety bonds. False There are only two categories of guaranteed bonds. The first one is the contract type which provides financial security and construction assurance on building and construction projects by assuring the project owner that the contractor will work and pay certain subcontractors. The second one is the commercial type which is a guaranteed performance by the principal of the obligation or undertaking described in the bond. Understanding the difference between these two different categories is vital. 2. Finding a reputable surety bond provider is difficult and requires much research. False Most large casualty and property insurance companies have surety departments. In addition, there are some companies which guaranteed bonds make up all or most of their business. In either case, in order for a company to write these in the U.S. it must be licensed by the insurance department in multiple states. Locating a company that will provide this service is not very difficult because there are a number of places where this can be accomplished. 3. Guaranteed bonds can be filed electronically. True The Uniform Electronic Transactions Act now gives legal standing electronic documents and electronic signatures for surety bonds. UETA and E-sign clear the way for executing electronic contracts, including these. 4. Guaranteed bond information can be researched and found online. True There is an abundance of resources that are related to surety bonds. Each or any of these resources can be easily accessed online depending on what type of information is needed or desired by the individual. It is a good idea to do a fair share of research on this matter to make sure the rules and regulations are completely and thoroughly understood by all interested parties. There are many things in this financial area that may be difficult to understand. Research and expert advice will be very helpful in understanding the various terms, numbers, and information. 5. Acquiring bonds can demonstrate wise financial management. True Proverbs 21:5 - The thoughts of the diligent tend only to plenteousness; but of every one that is hasty only to want. Consumer Credit Counseling