Things You Should Know About Commercial Bond |
Posted: August 1, 2016 |
Like any other form of surety bonds, it is a three party bonds which involves Principal, Obligee, and Surety. Commercial surety bonds are mostly needed by state laws and statutes, and guarantee some aspect of a principal’s occupation. A commercial bond, such as a contractor license bond, is required mostly by government agencies, including federal, state or local. There are many types of commercial surety bonds and Nationwide has the expertise to help you find the one you need.
Image Credit: thebluebook.com Commercial bonds play a very important role by protecting the public that interacts with the principal. Government agencies need these bonds to keep the public safe from consumer fraud, in the completion of a project or unethical practices. Commercial bonds are typically used to reinforce laws such as license and permit regulations. These bonds may also be referred to as “non-contact” surety bonds. Here are some examples of these bonds: License and permit bonds: are needed by federal, state or municipal governments before they will grant a license or permit to conduct business in certain occupations or professions. License and permit bonds include contractor license bonds, electrician bonds, HVAC commercial bonds, non-resident license bonds and plumber bonds. Fuel tax bonds: are required by fuel sellers to guarantee payment of taxes. Lottery bonds: This is again to check if the companies that deal with lottery business are obeying state law and regulations. Mortgage broker bonds: is a guarantee that mortgage brokers will abide by state laws, rules and regulations under the mortgage broker license code. Title bonds: are required to register a vehicle or other property due to a lost or defective title. Title bonds are also known as a certificate of title bonds, defective title bonds, and lost title bonds. You may also wish to know know more about commercial bonds here at http://www.suretybondprofessionals.com/commercial-bonds/
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