surety bond

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Related to Surety bonds: Contract Bond

Surety Bond

1. A fee that a security holder must pay to the security's issuer, should the holder lose the physical certificate. The holder receives a replacement certificate in exchange for the surety bond. A surety bond helps reduce fraud.

2. See: Blanket fidelity bond.

surety bond

An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced.

surety bond

See fidelity bond.

References in periodicals archive ?
He maintained that 35 journalists contributed money, including one presently working in Doha, for a fixed deposit to serve as surety bond.
In addition, Grieco says more contractors are using alternative financing arrangements, such as certificates of deposit or lines of credit from a credit union or bank, in lieu of a surety bond, in situations where the project owner will accept these in lieu of surety bonds.
public construction, with good and valid reasons, requires surety bonds because it serves as a prequalification function for the public owner, it provides that completion guarantee to the owner and it protects the subs and suppliers performing work on the public project," he said.
So, for companies with strong, investment-grade credit profiles, surety bonds may be a solution.
In addition to flexibility and keeping lines of credit available, surety bonds create opportunity for more affordable securitization.
The company found that surety bonds costing the resident only $131.
The immediate issue that faces many knowledgeable and experienced private sector contractors is Surety bonds.
The American Recovery and Reinvestment Act has increased the amount of Small Business Administration-backed surety bonds up to $5 million.
The big winners are the small and emerging contractors who need access to surety bonds so they can bid on public construction projects," Administrator Steven Preston said in a statement.
Probably the most misunderstood type of financial agreement there is, is a surety bond," said Gary Brown, vice president of the Hays Agency Group in Minneapolis, who also referred to surety bonds as "the issue of the day.
The charges for a surety bonds are 2-3 percent of the contract price.