A Financial Guarantee Bond is not a single specific type of bond but is instead a term that is applied to many different kinds of bonds that are used to guarantee the payment of financial obligations which a bonded party has to another party. That other party is known as the obligee, and it is generally the state itself or the public, which is receiving protection in the event that the bond purchaser, known as the principal, defaults on those payments. Such payments can be for taxes, leases, penalties, fees, or any other financial obligation which the principal may have with the obligee.
There is a third party in this contractual agreement, and that is the surety company that issues the bond to the principal. In the event that the principal fails to live up to payment obligations, those payments would be made by the surety company, following a claim against the bond by the obligee. The surety bonding company would then attempt to recover any lost funds by getting them from the principal, whose default led to the claim being made
Application: Call underwriter for appropriate application at 1-800-452-7121
Get a Quick Quote TODAY
ALL ONLINE APPLICATIONS ARE SECURE
Thank you for contacting us! We'll contact you shortly.