Commercial Property Ch. 13: Surety Bonds
Mack Rogers UH FINA 4356
Terms in this set (21)
A written contract that expresses one party's promise to answer for another party's failure to do something as promised.
The party to a surety bond whose obligation or performance the surety guarantees.
The party to a surety bond that receives the surety's guarantee that the principal will fulfill an obligation or perform as promised.
The party (usually an insurer) to a surety bond that guarantees to the obligee that the principal will fulfill an obligation or perform as required by the underlying contract, permit, or law.
The obligation of one entity to answer for the debt, default, or miscarriage of performance of duties by another entity.
A surety bond guaranteeing the fulfillment of obligations under construction contracts or other types of contracts.
A contract bond guaranteeing that a contractor bidding on a construction or supply contract will enter into the contract and will provide a performance bond if the bid is accepted.
A contract bond guaranteeing that a contractor's work will be completed according to plans and specifications.
A contract bond guaranteeing that the project will be free of liens.
A contract bond guaranteeing that the work will be free from defects in materials and workmanship for a specified period after the project is completed.
A contract bond guaranteeing a local governmental authority that a subdivision developer will complete the subdivision in accordance with approved proposals and at the developer's expense.
Supply Contract Bond
A contract bond guaranteeing that a supplier will perform the designated supply contract according to specifications.
License and Permit Bonds
Surety bonds that provide payment to the obligee (the state, city, or other public entity) for loss or damage resulting from violations of the duties and obligations imposed on the licensee or permit holder.
Public Official Bond
A commercial surety bond guaranteeing that a public official will perform his or her duties faithfully and honestly.
A classification of surety bonds guaranteeing that a person or an organization will faithfully perform certain duties described by law or by a court or will demonstrate financial responsibility for the benefit of another until the final outcome of a court's decision.
A judicial bond guaranteeing that, if the court decides against a plaintiff who has requested attachment of the defendant's property, the defendant will be paid any damages that result from the property attachment.
Release of Attachment Bond
A bond that guarantees that the insured will pay any damages and court costs if the court should decide in the claimant's favor.
A judicial bond guaranteeing that a plaintiff who appeals an adverse decision to a higher court will pay all court costs of the appeal.
Defendant's Appeal Bond (Supersedeas Bond)
A judicial bond guaranteeing that a defendant who appeals an adverse decision to a higher court will pay the entire judgment, plus court costs and interest, should the higher court sustain the initial judgment for the plaintiff.
A court bond guaranteeing that a person appointed by a court to administer the property or interests of others will faithfully perform his or her duties.
Any bond that does not fit well under the other primary categories of surety bonds formulated by the Surety and Fidelity Association of America.