Surety bond is defined as a three-party agreement that legally binds together. One who needs the bond, an obligee who requires the bond and a surety company that sells the bond.
A Surety Bond or also referred to as a Cash Bond is a legally binding agreement used to tie a principal, an obligee, and a surety. In a Surety Bond, the principal is the individual who needs the bond while the obligee is the one who requires the bond. The surety and its company or corporation will be the one to sell the bond.
A complete Cash Bond contract must include the following information:
A principal or a surety can write his or her own Surety Bond or download a PDF copy from a website that offers document templates. For convenience, he or she can also fill out a Surety Bond electronically on PDFRun.
To fill out an official Surety Bond, you must provide the following information:
Name of Principal
Enter your full legal name.
Name of State
Enter the name of the state wherein the corporation, as a surety, has been incorporated under its laws.
Name of State
Enter the name of the state wherein the corporation, as a surety, has been licensed to transact a surety business.
Name of Obligee
Enter the full legal name of the obligee.
You and your surety will be bound to the obligee for the sum all of the parties involved have agreed upon. Both you and the surety must jointly and severely bind yourselves, your successors, assigns, and legal representatives to this payment.
Sum of Payment
Enter the payment that has been agreed upon in U.S. dollars.
You and the obligee must enter into a written contract according to the time period that you have both agreed upon.
Time Period of Contract
Enter the time period of this surety bond contract.
Date of Execution
Enter the date when this surety bond contract has been executed.
Item 1. Duration
This obligation that has been tied to you, the surety, and the obligee must run continuously and must remain in full force and effect until the surety bond has ended or until either of the parties decide to have it terminated or canceled as stated in this contract.
Item 2. Condition of Obligation
If you completely fulfill your obligation or indemnify the obligee against any loss that may have resulted from the breach of any part of the original contract you have made, the obligation in this surety bond will become void.
Item 3. Notice
There will be no liability attached to the surety under this contract unless a fact or circumstance that is indicating a possible claim will be discovered by any of the parties involved. In case this happens, an immediate written notice about the occurrence and all of its details must be delivered to the surety at its principal office.
Location of Principal Office
Enter the address of the principal office.
Item 4. Termination
The surety has the right to terminate its obligation. In this case, the surety must create a written notice which contains all of the details of the termination and deliver it to the obligee. A written notice of termination from the surety will not affect any other obligation which might have arisen prior to the receipt of such notice from the obligee.
Item 5. Completion of Original Contract or Subrogation
In cases wherein you happen to default, the surety has the right to assure, complete, or procure the completion of your obligations as the principal. Furthermore, the surety will be subrogated and entitled to all of your rights and properties that may arise out of this surety bond contract.
Item 6. Extent of Liability
The maximum amount of the liability of the surety must not exceed the amount that has been agreed upon by all of the parties involved. This amount will include the interest that is due.
Maximum Amount of Liability
Enter the maximum amount of the liability of the surety in U.S. dollars.
Item 7. Modification of Original Contract
All of the parties involved in this surety bond contract have the right to modify the obligations in the original contract and these modifications may be made without the consent or knowledge of the surety. Furthermore, any modifications that will be made by the parties will not in any way release the surety from its liability under this surety bond contract.
Item 8. Severability
If any of the provisions and conditions on this surety bond contract are held to be illegal or unenforceable by the law or a court of competent jurisdiction, all of the other provisions and conditions in this cash bond contract will not be affected in any way and will remain effective.
Item 9. Binding Effect
This cash bond contract will become binding and inure on surety and its successors, assigns, and legal representatives.
In Witness Whereof
Once all of the parties have affixed their respective signatures, the execution and certification of this cash bond contract will be complete.
Date of Execution
Enter the date of the surety bond contract execution using the format: Day-Month-Year.
Enter your full legal name and affix your signature.
Have the surety or its representative enter his or her full legal name. Then, have the surety or its representative affix his or her signature.
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