An Insight into Different Types of Commercial Surety Bonds

  • This info-graphic titled ‘An Insight into Different Types of Commercial Surety Bonds’ provides us an overview of bonds for commercial sureties.  Bonds which are needed to satisfy or guarantee fiduciary obligations, governmental legislation, as well as private contractual obligations of the applicant or the principal defined under the bond. Bonds sold to institutions and individuals in order to satisfy government regulations and court orders, or to renew lost documents such as share certificates. Commercial Surety Products consider bonds which respond to federal and/or provincial statutes and regulations. They are usually part of licence and requirements for companies or individuals.

    Commercial Surety Bonds protect the user against fraud, misrepresentation, and compensation of monetary loss and are typically needed by federal and/or provincial courts, government bodies, financial institutions, and private firms.

    Commercial Surety Bonds can be used to guarantee performance of non-construction accompanying contractual obligations. These can replace letters of credit, and are generally more cost effective and they do not require the principal to post collateral as security. For more information, please refer to the info-graphic below.