THE FALLS INSURANCE CENTER, INC.
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What situations would require bonding?
Public Officials Bonds Where one has been elected or appointed to a public
office and is required by law, in order to qualify, to give bond with
surety for the faithful performance of his duties.
Court Fiduciary Bonds Where one has been appointed to a position of trust to be administered under the jurisdiction of a court, such as executor, administrator, guardian, trustee, or receiver, and is required by law to give bond with surety for the faithful performance of his duties.
Bonds in Judicial Proceedings is where a litigant, in advance of a final decision by the court on the merits of his claim, is allowed to have a particular remedy upon condition that he file bond with surety to protect the opposing litigant from loss in case the final decision. When it is made, is adverse to the litigant to whom the provisional remedy was allowed.
Contract Bonds Where one has been awarded a construction or supply contract, upon condition that he will give bond with surety for the performance of his obligations under the contract.
License and Permit Bonds Where one has been granted a license to engage in a particular business, or a permit to exercise a particular privilege, upon condition that he give bond with surety for the performance of his obligations under the license or permit.
What criteria are considered to qualify for a bond?
Character It is a basic principle of surety underwriting that bonds should
be approved only for applicants whose standing and reputation are such as
to warrant the conclusion that they are of good character and worthy of
trust.
Capacity If the undertaking to be covered by the bond will require any particular skill or ability for its performance, a resume‚ outlining the principal's qualifications will be required.
Financial Resources In situations dealing with credit guarantees, financial guarantees, contract and indemnity bonds, the financial resources of the applicant constitute the most important factor in determining whether the risk will qualify for surety. Financial statements will be required and will be analyzed for accuracy. A review may include credit reports, CPA audits, and Dun & Bradstreet ratings.