{"id":132,"date":"2017-02-16T11:02:58","date_gmt":"2017-02-16T11:02:58","guid":{"rendered":"https:\/\/www.suretegrity.com\/blog\/?p=132"},"modified":"2017-02-16T11:22:11","modified_gmt":"2017-02-16T11:22:11","slug":"commercial-surety-bond-types","status":"publish","type":"post","link":"https:\/\/www.suretegrity.com\/blog\/commercial-surety-bond-types\/","title":{"rendered":"Commercial surety bond and their types"},"content":{"rendered":"
A bond is a legal tool that binds three parties:<\/p>\n
\u2022 Principal<\/strong> \u2013 the person or the party seeking the bond<\/p>\n
\u2022 Obligee<\/strong> \u2013 person requesting the bond from the principal<\/p>\n
\u2022 Surety<\/strong> \u2013 a company that guarantees the bond<\/p>\n
A bond is very different from an insurance policy. A bond is required to fulfill any damage that has occurred due to non-completion of the bond\u2019s requirement.<\/p>\n
There are various kinds of surety bonds:<\/p>\n
\u2022 Bid Bonds<\/strong><\/p>\n
Bid bonds are needed by businesses before taking part in bidding for a contract. The bond ensures that the business will sign the contract if they win the bid.<\/p>\n
\u2022 Auto dealership bond<\/strong><\/p>\n
It is required to obtain an auto dealership license in any state.<\/p>\n
\u2022 Cigarette tax bond<\/strong><\/p>\n
Tobacco distributors provide this bond to the government to ensure that they will pay the required taxes.<\/p>\n
\u2022 Liquor tax bond<\/strong><\/p>\n
Liquor dealers obtain this bond and submit it to the state government to ensure that they will pay the required tax.<\/p>\n