What is a Surety Bond Form?

Are you being required to obtain a bond and have no idea what it is?

A bond form is the language of the form written and drafted by the obligee. If the surety bond you are being required is from a government obligee, the bond form usually will reference government statues and laws. If the bond is a performance bond than the bond usually is referencing stipulations in the contract.

When the bond form is issued it turns into the final surety bond. This is what your will turn in to the obligee.

A surety bond is similar to a loan. If you have a claim the surety will fulfill you obligations that where stipulated in the bond. Keep in mind that if you have a claim you must pay the surety back. That is how a bond is similar to a loan.

A bond form should have the following items

First item: The surety company should be clearly listed

Second item: A signature from the attorney in fact

Third item: The form should have a surety seal loan signing agent. or stamp.

Fourth Item: A power of attorney attached to the bond.

After you receive the surety bond you must sign as principal and then deposit it with the obligee.
As more government offices are going paperless more and more obliges are allowing electronic filling of the bonds.

Surety bonds are designed to protect the obligee from a multiple of things. They can protect against payment of goods, taxes and contracts. Surety bonds can protect against fraud or miss reputation. If you are being required to obtain a surety bond you can get the bond form from the obligee in most cases since they are the ones that drafted it for their protection. In most cases business are required to have this form of consumer protection to obtain a business license.

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