Surety Bond Glossary

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A

Admiralty Bond
Court bonds filed in connection with litigation under maritime law needs more info.

Advance Payment Bond
Subject to specific bond terms, guarantees repayment of liquidation by the principal of monies advanced in connection with a construction or supply bond or other type of contract.

Agricultural Dealer Bond | Surety Bond
Persons who buy and resell products of agriculture (livestock, hay, grain, vegetables etc.) are required to post a bond and be licensed with the Department of Agriculture. This act was established
(1).To protect producers of agricultural products from things.
(2) Unwarranted hazard and loss in the sale of their products
(3). To ensure an adequate and available supply of products to the consumers within the state.

Alcohol Bond Surety Bond
Alcohol Bond given in compliance with Federal or State laws or regulations governing the sale, manufacture or warehousing of alcohol for beverage or non-beverage purposes.

Annual Guarantee Bond
Guarantees performance of all contracts entered into during the term of the bond.

ARC Bond Surety Bond
ARC Bond-Used by travel agents to guarantee payments for airline tickets. Bond guarantees that money collected by the travel agency for tickets sold by the agency will be forwarded to the proper airlines.

Areaway Permit Bond
Indemnifies city against loss arising by reason of construction or maintenance of areaway or easement

Assigned Accounts Bond
Guarantees that only valid accounts are assigned and that payments received will be accounted for.

Athletic Exhibition License Bond
Guarantees the payment by promoter of expenses, division of purse, etc.

Auctioneer Bond Surety Bond
Covers compliance with law, and accounting to persons for property sold. State requirement, guarantees principal will account for and pay money due to entitled parties. Auctioneer Surety Bonds are surety bonds required by State and Federal Government. Each state has their own specific surety bond form; the principal is required to provide their state's form. The amount of the surety bond varies from state to state. We can write Auctioneer Surety Bonds regardless of your credit situation.

Awning Permit Bond
Indemnifies city against loss arising because of construction or maintenance of awning.

B

Bankers Blanket Bond
Covers a financial institution for dishonest or fraudulent acts of employees, inside and outside theft of property, and losses resulting from reliance upon a document later discovered to be counterfeited or forged.

Beer Bond Surety Bond
Covers compliance with state or local laws concerning the sale of beer, including payment of tax.

Bill of Landing Bond
Indemnifies a railroad against loss because of delivery of freight without surrender of bill of lading.

Bid Bond
This bond guarantees that if bid of principal is low, they will enter into a contract and file a Performance Bond.

Blue Sky Bond Surety Bond
Many states control the sale of securities under regulations known as Blue Sky Laws. These laws are designed to prohibit the sale of worthless securities. Blue Sky Bonds are required of security dealers to indemnify purchasers against loss caused by false representations. Blue-sky bonds: Bonds required of securities dealers to prohibit the sale of worthless securities.

Bond Warehouse Surety Bond
State Indemnifies state for the benefit of its citizens against loss of commodities stored in accordance with warehouse law.

Bond Warehouse
USA to comply with Internal Revenue regulations; also for safekeeping of merchandise under jurisdiction of Customs Department; also under Federal Warehouse Act.

Boxing / Wrestling Bond Surety Bond
Guarantees the payment by promoter of expenses, division of purse, etc

Brewer's Bond Surety Bond
Federal Guarantees compliance with regulations of federal government and payment of tax.

Brewer's Bond
State Guarantees compliance with regulations of state government and payment of tax.

Building Permit Bond
Building Permit Bond Covers compliance with building laws and in some cases indemnifies against claims arising out of building operations.

Business Brokers Bond
Guarantees compliance with law covering business brokers, indemnifies against misrepresentation, etc.

C

Canopies Permit Bond
Indemnifies city against claims arising due to construction and maintenance of a canopy.

Carnet Bond
This bond is required before applicants can take certain products into other countries for a temporary period. It guarantees that the applicants will return the products to the U.S. or pay any Customs duties, excise taxes and charges imposed.

Certiorari Bond
Certiorari Bond to enable a litigant to transfer suit to another court, covers payment of costs and/or judgment.

Check Cashiers and Sellers Bond
Required by licensees who cash checks, drafts, or money orders, or who are authorized to accept payments for utility bills.

Cigar / Cigarette License Bond
Covers compliance with state law and regulations in sale of cigars/cigarettes.

Cigar / Cigarette Tax Bond
Covers compliance with state law and regulations in sale and payment of taxes of cigars/cigarettes.

Collection Agency License Bond
Guarantees accounting for funds received by collection agency. Guarantees that monies collected will be properly dispersed to clients.

Commission Merchant Bond
Guarantees payment for produce shipped to principal.

Commissioner Bond
To Sell Real Estate Guarantees faithful performance of duty by fiduciary appointed by court to sell specific piece of real estate and to account.

Committee for Incompetent Bond
Guarantees faithful performance of duty by a person appointed by court to administer the property of an incompetent person. Guarantees faithful performance of duty by a person appointed by court to sell or mortgage real estate that is in litigation.

Commodity Dealer Bond
Amends existing law relating to commodity dealers to provide for a licensure reinstatement period; to provide for denial of commodity dealer's licenses to certain limited liability companies or associations; to revise provisions relating to bonds of applicants for licensure; to revise license fee provisions; to revise criteria and procedures for the Department of Agriculture's inspection of a commodity dealer's premises, books and records; to clarify record disclosure provisions; to provide that licensed public accountants may prepare required financial statements; and to revise provisions relating to bonds

Completion Bond
One given by the owner to a lender, mortgagee or others guaranteeing, subject to the terms of the bond, the successful financing to completion of a building or other construction project free of liens. Should not be confused with Construction Contract Bond, which is given by a contractor to the owner providing for faithful performance on the contract.

Concessionaire Bond
Guarantees operation of a concession and the payment of rental or percentage of profits.

Conduct Bond Conduct
Surety Bonds are given in compliance with Federal or State laws or regulations governing the sale, manufacture or warehousing of alcohol for beverage or non-beverage purposes.

Constable Bond
Guarantees faithful performance of duty, accounting for monies received, and indemnifies against claims involving questions of authority.
38. Contractor Disciplinary Bond- Contractor has been in trouble and Contractor License Board is asking for a disciplinary bond.

Construction Contract Bond
Subject to the terms of the bond, this bond guarantees the faithful performance of a Contract bond. It is a three-party agreement between the contract as principal; the owner as obligee, and the surety.

Contract Bond
Subject to the terms of the bond, this bond guarantees the faithful performance of a construction contract and usually the payment of all labor and material bills related to it.

Contractors License Bond
A Contractor License bond guarantees the contractor will comply with all statutes and licenses the state requires. Contractors License Surety Bonds are surety bonds required by Municipalities, States and the Federal Government to ensure principal abides by the governing rules and regulations. Each has their own specific surety bond form. The principal is required to provide their surety bond form. The amount of the surety bond varies so be sure to indicate amount on the surety bond application. We can write Contractors License Surety Bonds regardless of your credit situation.

Court Bonds
Any type of bond required to enable litigants to pursue their remedies at law.

Cosmetology School Bond
Guarantees principal will furnish instruction to any person who has paid or deposited any money with said principal as payment for any instruction.

Cost Bond
One required of a litigant guaranteeing, subject to the terms of the bond, the payment of the costs of the litigation, such as fees of the court clerk, sheriff and the like.

D

Dance Studio Bond
Guarantees dance studio will provide lessons and other services as provided in their contract with a customer. Otherwise, the customer shall have the right to cancel the contract per the laws and be refunded their money in full.

Defective Title Bond
These bonds protect the obligee against loss, which may result from the issuance of duplicates of the instruments, or, in some instances.

Demurrage Freight Bond
Covers payment of demurrage charges of railroad or steamship line.

Denatured Alcohol Bond
Denatured Alcohol Bond Covers compliance with Internal Revenue Laws with respect to manufacture or use of denatured alcohol.

Depository Bond
Guarantees payment by named bank (the principal) of the funds in a stated account.

Deputy Sheriff Bond
Guarantees faithful performance of duty as a deputy sheriff, service of writs, executions, etc.

Detective Agency License Bond
Covers compliance with laws governing the licensing of detective agencies.

Discharge, Dissolve, Defendants Attachment Bond
Guarantees to produce property that was previously levied upon by attachment.

Discharge, Dissolve, Defendants Injunction Bond
Indemnifies against claim for damages because of the discharge or lifting of an injunction.

Distiller's Bond
Guarantees compliance with Internal Revenue Laws and regulations governing distillers, and payment of tax.

Do Not Call Bond
A form of license bond required by state law as a condition to engaging in telephone soliciting. This bond guarantees the performance that the services sold by the telephone solicitor will be delivered. This bond provides refunds and restitution to consumers who contract to buy goods or services from telemarketers. A claim can be made against the bond if the services have not been delivered by the wrongful act of the Principal or for any failure to comply with state law. This is also known as a Telemarketing Bond.

Drain Layer's License Bond
Guarantees compliance with ordinances and regulations in the construction of drains and sewers.

Draying and Hauling Bond
Guarantees performance of contract for draying (a low, heavy cart without sides, used for haulage) and hauling materials, supplies, etc.

Driving School Bond
Guarantees the owner shall not practice fraud or make fraudulent representations that cause monetary loss to any person taking instruction. Driving School Surety Bonds are surety bonds required by Municipalities and State Governments. Each has their own specific surety bond form; the principal is required to provide the required surety bond form. The amount of the surety bond varies. Be sure to include the required amount on the Driving School surety bond application to appear on the surety bond. We can write Driving School Surety Bonds regardless of your credit situation, so APPLY NOW.

Dry Cleaners Bond
Guarantees clothes will be cleaned free from damage caused by fraud/negligence of principal.

E

Easement Bond
This Bond protects the property that you cross; you must restore it to its original condition if you damage it.

Electricians License Bond
Covers compliance with local ordinances and regulations governing electrical work.

Employment Agency License Bond
Covers compliance with law governing operation of employment agency, indemnify against misrepresentation, etc.

ERISA Fidelity Bond
ERISA Fidelity bond to cover retirement accounts.

Escrow License Bond
Licensee will faithfully conform to and abide by the provisions of the code and all rules made by the commissioner. The escrow agent will apply all funds received and will perform all obligations under the code.

Excess Weight & Length Bond
This indemnifies the Highway Department of the State against liability or damage to property due to the hauling of excess loads or the operations of excess length trucks and trailers.

Executor Bond Guarantees
Faithful performance of duty by a fiduciary named in a will and appointed by the court as executor.

Executrix Bond
Guarantees faithful performance of duty by a fiduciary named in a will and appointed by the court as executor.

F

Farm Labor Bond
Guarantees payment of all sums due farm laborers only. Guarantees compliance with Labor code & payment of all damages to any person for failure to do so.
Farm Labor Surety Bonds are surety bonds required by State and Federal Governments. Each has their own specific surety bond form; the principal is required to provide the required surety bond form. The amount of the surety bond varies. Be sure to include the required amount on the Farm Labor Surety Bond application to appear on the surety bond. We can write Farm Labor Surety Bonds regardless of your credit situation,

Federal Official Bond
Subject to the specific terms of the bond, these bonds provide that the principal, or Federal official, will faithfully perform his/her official duties and will account for all funds entrusted to his care.

Financial Guarantee Bond
Guarantee the payment of a sum of money at some future date.

Financial Institutions Bond
Forms of blanket bond to be issued to financial institutions. Financial Institution Surety Bonds are surety bonds required by Municipalities, States and the Federal Government. Each has their own specific surety bond form; the principal is required to provide the required surety bond form. The amount of the surety bond varies. Be sure to include the required amount on the Financial Institution surety bond application to appear on the surety bond. We can write Financial Institution Surety Bonds regardless of your credit situation

Financial Responsibility Bond
Guarantees payment of sales tax imposed by statute or local law.

Fish And Game Guide Bond
Guarantees that guide and his agents will faithfully perform services agreed upon between principal and his clients.

Fish and Game License Bond
Guarantees payment to State for licenses sold and accounting for all unsold licenses

Fixed Penalty Bond
A bond for which the amount is expressed in terms of a stated and definite sum of money. Compare with Open Penalty Bond

Franchise and Ordinance Bond
Covers compliance with ordinances in connection with the granting of a privilege on public property.

Fuel Tax Bond
Guarantees all tax, penalties, interest and cost due to State. A permit is issued by the Board of Equalization and taxes are paid monthly. Fuel Tax Bonds are surety bonds required by State and Federal Government. Each has their own specific surety bond form; the principal is required to provide the surety bond form. The amount of the surety bond varies from state to state. We can write Fuel Tax Bonds regardless of your credit situation

Fumigator's License
Bond Covers compliance with ordinances governing fumigators doing public work.

G

Gas Lease Bond
Covers payment of royalty or rent in connection with the drilling and operation of gas wells.

Gasoline Tax Bond
Guarantees the payment of gas tax on motor fuel handled. Gasoline Tax Bonds are surety bonds required by State and Federal Government. Each has their own specific surety bond form. The principal is required to provide the surety bond form with application. The amount of the surety bond varies from state to state: be sure to provide the amount on the surety bond application. We can write Gasoline Tax Bonds regardless of your credit situation,

General Advantage Bond
When a ship and cargo have been in a common peril and a voluntary sacrifice of a part of the cargo has been made, bond is required upon delivery to the respective owners of the property.

H

Health Club Bond
Guarantees the refund of membership fee in case the health club or spa goes out of business. Health Club Surety Bonds are surety bonds required by Municipalities and State Governments. Each has their own specific surety bond form; the principal is required to provide the required surety bond form. The amount of the surety bond varies. Be sure to include the required amount on the Health Club surety bond application to appear on the surety bond. We can write Health Club Surety Bonds regardless of your credit situation,

House Mover's License Bond
Indemnifies a municipality against loss by reason of claims for personal injury or property damage resulting from house moving or wrecking operations.

Hunting, Fishing and Trapping Licenses Bond
This bond is required for the sale of hunting, fishing and trapping licenses. It guarantees faithful accounting of funds received to the proper governing authority.

I

Importer Or Broker Bond
Guarantees payment of duty on goods imported.

Income Tax Bond
These are given to guarantee payment, subject to the terms of the bond, of federal income taxes due or claimed to be due.

Indemnity To Sheriff Or Marshal A bond
To protect the Sheriff or Marshal from a suit being brought on by the party whose property is being seized by an order of possession or writ of execution?

Insurance Adjustors Bond
Guarantees that principal will honestly and faithfully comply with the laws and not willfully commit any malicious or wrongful act while conducting business as an insurance adjuster. Insurance Adjusters Surety Bonds are surety bonds required by Municipalities and States Governments to ensure principal abides by the governing rules and regulations. Each has their own specific surety bond form. The principal is required to provide their surety bond form. The amount of the surety bond varies so be sure to indicate amount on the surety bond application. We can write Insurance Adjusters Surety Bonds regardless of your credit situation

Insurance Agent / Broker Bond
Guarantees that the insurance agent/broker will account to their companies and the public for insurance premiums.

Intoxicating Liquor Bond
Guarantees compliance with law governing sale or handling of intoxicating liquors, in some cases including payment of tax.

J

Junk Dealer's License Bond
Indemnifies city against claims due to the acts of one licensed as a junk dealer.

L

Labor Union Bond
Labor Union Bond Subject to its terms, this bond guarantees that every officer, agent, shop steward or other labor organization representative faithfully performs her/his duties. Labor Union Surety Bonds are surety bonds required by Unions to guarantee the payment of union dues and benefits. Each union has its own specific surety bond form. The principal is required to provide their surety bond form. The amount of the surety bond varies: be sure to indicate amount on the surety bond application. We can write Labor Union Surety Bonds regardless of your credit situation,

Lease Bond
Guarantees payment of rent, and in some cases payment of taxes.

Lender Bond a Bond
G uaranteeing the completion of construction of a building or an improvement to a property, requiring prior to a lender or mortgagee advancing money to the owner or developer. After completion, the property replaces the bond as security for the loan

License and Permit Bonds
Required before granting of a license for engaging in a particular business or exercising a specific privilege. These bonds apply to certain serious obligations entailed on those seeking licenses or permits. License & Permit Bonds are a type of surety bond that is required for many licensing applications. They are the most common types of bonds, since almost every business requiring a license or permit to do business must acquire a bond in order to obtain that license or permit

Liquor Bond
A Liquor Bond is given in compliance with Federal or State laws or regulations governing the sale, manufacture or warehousing of alcohol for beverage or non-beverage Liquor Tax Surety Bonds are surety bonds required by State and Federal Government. Each state has their own specific bond form; the principal is required to provide the surety bond form. The amount of the bond varies from state to state. We can write Liquor Tax Bonds regardless of your credit situation purposes.

Livestock Buyers Bond
Guarantees payment for livestock purchased, and/or accounting for funds received for sale of livestock.

Loan Company License Bond
Guarantees compliance with laws relating to the operation of small loan companies.