fidelity bonds for Dummies

DEPOSIT Quality: The progress high quality demanded by a surety firm on Individuals varieties of bonds which happen to be topic to top quality adjustment.

Extra BOND: More protection in excess of a Most important bond safeguarding from specific perils (typically dishonesty) implementing only to reduction previously mentioned a specified quantity.

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CUMULATIVE Legal responsibility: The mixture quantity of two or more bonds in behalf of precisely the same principal (or in the case of fidelity or blanket bonds, in favor of precisely the same obligee) submitted in succession, where by the succeeding bond(s) does not extinguish the liability beneath the prior bond(s) or perhaps the liability from the surety will be the penalty with the bond periods the amount of several years in drive.

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This kind of laws, if interpreted strictly, ordinarily exempt the general public official and his/her surety from liability for decline through failure of any with the specified and experienced depositories.

OBLIGEE: The social gathering in whose favor a bond operates; the social gathering shielded by the bond in opposition to decline. An obligee could be a individual, firm, corporation, authorities, or an company of a govt.

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