Holiday Schedule: July 4th
06/30/2008
Bryant Surety Bonds will be closed on Thursday, July 3rd for Independence Day Weekend; we will return on Monday, July 5th. We hope you all have a safe and pleasant holiday. While we are closed, please explore our website for information on surety bonds, and when you are ready, use our free online application. We look forward [...]
Mortgage Apps drop to over 6 year low?.Rates also Fall
06/25/2008
Mortgage applications for the week ended June 20 dropped 9.3%, the lowest since December 28, 2001.
Borrowing for a 30 year fixed-rate mortgage averaged 6.39% in last week, down 0.18 percentage points from the previous week, this is also below the average 6.60% of a year ago.
Surety bonds are three-party agreements in which the issuer of the bond (the surety) joins with the second party (the principal) in guaranteeing to a third party (the obligee) the fulfillment of an obligation on the part of the principal.
Obligee: The party (person, corporation, or government agency) to whom a bond is given. The obligee is also the party protected by the bond against loss.
Principal: The individual who is required to be bonded by the obligee.
Surety: A person or institution that guarantees the acts of another person or institution.
This is a commonly asked question, but is difficult to answer because surety bond premiums vary from one surety to another. In general a surety bond premium can range from half of one percent to two percent of the contract amount, and is based on size, type, credit, and duration of the project.
Some bonds incorporate several bonds; for instance, a Performance bond can include Payment bonds and Maintenance bonds. These bonds are typically priced based on the value of the contract being bonded, and not the size of the bond. If the contract amount changes, the premium adjusts to reflect the change.
When bonds are specified in a contract it is the contractor´s responsibility to obtain the bond. Typically, the contractor figures the bond premium into the bid amount. This premium is typically payable upon execution of the bond.
Commercial bonds have a greater range of pricing, with high-risk bonds requiring 10% collateral along with a higher premium.
This is the easy part. Go to our surety bond application page and download the proper application for your bond. Once completed, please send the application to us for review.
There are several reasons for this. First, the bonding company tries it's best to paint a picture of who you are through your financials, and though this can give decent picture, it cannot speak of the person you are. By having a spouse sign, a person close to you is commenting on you character. Second, on more legal grounds, married people share joint assets, which in the worse case scenario, the bonding company may have to draw upon, should there be a claim.
Like pricing, this is a hard question to give a firm answer to. There are a variety of factors, such as the underwriters at the bonding company that can bog down this process. Bryant Surety Bonds will do everything possible to expatiate the process; including sending your application to the proper bonding company on the same day it is received.
While some bonds are approved immediately, others can take from one to four business days. After approval, the bonds issuance typically occurs about one to two days after receipt of payment (and any other documents required by the surety for release of bond). Contract Bonds
The Contract, or contractor bond, is any form of bond required of a contractor for construction. The only exception is the Contractors license bond, which is considered a non-contract commercial bond.
Contract surety bonds include the following: Bid bonds, Performance bonds, Payment bonds, Maintenance bonds, and Subdivision bonds.
All of the above mentioned bonds are available through Bryant Surety Bonds provided the applicant is in good credit standing. We are unable to assist any high-risk applicant at this time, as contract bonds are not offered in high-risk markets.
A Bid bond provides financial assurance that the bid has been submitted in good faith. By being issued a Bid bond the surety is assuring that the contractor will enter into the contract at the bid price. It also assures that the contractor will be able to acquire the required Performance and Payment bonds.
A Performance bond is required by the obligee (owner) to protect against financial loss should the contractor (principle) be unable to perform the contract as per its terms and conditions.
A Payment bond assures that the contract will pay the suppliers, laborers, and subcontractors involved in the project.
A Maintenance bond guarantees against defective workmanship and materials for a specific period of time.
Subdivision bonds assure the state, city, or township that the principle will finance and construct improvements for the good of the public. Such improvements include, but are not limited to: streets, sidewalks, gutters, drainage systems, and turning lanes.
Commercial BondsCommercial bonds include License and Permit bonds, Judicial bonds, Probate or Fiduciary bonds, Public Official bonds, Federal bonds (non-contract), and many other miscellaneous bonds. These bonds are required by law to conduct business.
State or local laws require License and Permit bonds to engage in a certain business. Examples include; auto dealers, contractors, securities dealers, employment agencies, liquor, and sales tax.
Judicial and Probate bonds, also known as Fiduciary bonds, secure the performance of fiduciaries duties and their compliance with court orders. Examples include; administrators, executors, guardian, trustees of wills, receivers, and masters.
Examples of Judicial Proceedings, or Court bonds, include; appeals, injunctions, attachment, indemnity to sheriff, and admiralty.
Public Official bonds assure the performance of duty of a public official. Examples include; treasures, sheriffs, judges, clerks, notaries, and tax collectors.
The federal government requires Federal bonds for Medicaid and Medicare providers, Customs, and immigrants.
As the name implies, Miscellaneous bonds do not fall into the above categories. Examples of these bonds include; a guarantee of employer contributions for union fringe benefits, guarantee of payment for utilities, and worker compensation for self-insurers.
