Bonds

Bonds

Gives the insured the necessary guarantee to answer an obligation constituted in a principal contract whereby the principal has failed to comply with his obligation to the obligee. Surety is not a contract of indemnity (insurance contract) but a contract of guarantee.

Construction Bond

This refers to a class of bonds for the entire construction process.

Bid or Proposal Bond

Guarantees that the bidder, if awarded the contract, will enter into a contract and furnish the prescribed Performance Bond.

Performance Bond

Guarantees the full and timely performance of the contract according to plans and specifications.

Advance Payment Bond

May be secured if the obligee(owner) is financing a contractor by advanced payment of the contract. The amount guaranteed decreases in accordance with the fixed percentage in the monthly bills.

Labor and Materials Bond

Guarantees that the contractor will pay all the bills incurred in connection with the use of labor and supply of materials required in the fulfillment of the contract.

Maintenance Bond

Guarantees the completed works during the maintenance period against defective workmanship or materials.

Supply Contract Bond

Similar to the Performance Bond except that the underlying contract involved the supply of merchandise or materials, this guarantees the full and timely performance of the supply contract according to the terms and conditions agreed upon

Judicial Bond

This is a class bond that is required during judicial proceedings.

Administrator’s Bond

When an administrator is appointed by the court to settle the estate of the deceased person, this guarantees that he will faithfully perform his duties under law.

Executor’s Bond

Guarantees the performance of an executor’s duties, which are similar to those of an administrator.

Guardian’s Bond

Guarantees the performance of the guardian’s (for the person or estate of both) duties and responsibilities.

Recievership Bond

Three types of Receivership Bonds:

1.Bond to Appoint Receiver- required when the court as a receiver appoints a person without notice to the other party.

2. Bond to discharge Receiver – receiver appointed may be discharged if the adverse party opposes the appointment and files a bond to discharge receiver in such amount as may be determined by the court.

3. Regular Receiver Bond- guarantees that the receiver will faithfully discharge the duties of receiver in the action and obey the orders of the court.

Attachment Bond

The plaintiff will pay all the costs, which may be adjudged, to the adversed party and all damages, which he may sustain by reason of the attachment.

Counter Attachment Bond

Conditioned to secure the payment of any judgement that the attaching creditor may recover in action.

Replevin Bond

Guarantees the return of property to the defendant if the return thereof were adjudged and the payment to the defendant of damages that he may suffer as a result of the issuance of the writ of replevin.

Counter Replevin Bond

Guarantees the delivery of the property to the plaintiff, if such delivery were adjudged, and that the defendant shall pay the plaintiff such sum as the plaintiff may recover against the defendant.

Injunction Bond

Shall answer for all damages, which the party enjoined by the order of injunction, may sustain by reason of the issuance thereof if the court should finally decide that the plaintiff was not entitled thereto.

Counter Injunction Bond

Guarantees payment of all damages which the plaintiff may suffer if the injunction is refused or lifted.

Supersedes Bond

Guarantees performance of the judgment in case it is affirmed wholly or in part.

Bail Bond

The accused shall answer the complaint or information in the court in which it may be transferred for trial, and after conviction, that he will surrender himself in execution of such judgment.

CHECKLIST:
Name of Assured
Address
Telephone Number
Fax Number
Type of Bond: