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What Are Surety Bonds?

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In the world of finance, a surety bond, surety or guaranty essentially involves a pledge by a third party to assume the risk of a particular borrower in case that debtor defaults. Surety bonds are used for various purposes in the financial market. Typically they are used as guarantees to secure loans from banks and other lenders. Also they are used to guarantee debts of individuals and companies to other individuals or companies. A surety Bond can also be used as legal protection in some situations.Find additional information at surety bonds.

Today surety bonds are extensively used in the financial market. They are also used as evidences for foreclosures and are sometimes used as evidences for eviction cases in certain cases. They may also be required for relocating a business from one place to another, for opening a new business in a new location, obtaining a mortgage or for obtaining an auto loan.

However, it is a must that people should carefully read and understand the terms and conditions of surety bonds before signing on the dotted line. One should also be very clear about the consequences of not abiding by the agreement. One should also remember that not only have they been advised about the consequences of their actions, but they also have been told how to recover their money in case the claim is not granted in terms stipulated in the contract. Make sure that you understand the complete terms and conditions of the contract before signing. If you have any queries regarding surety bonds, you should consult your lawyer who will be in a better position to advise you.

Contact Info

MEY’S INSURANCE SERVICES
5586 MISSION BLVD STE A, RIVERSIDE, CA 92509
951-684-0494

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