surety bond


Also found in: Dictionary, Thesaurus, Encyclopedia, Wikipedia.
Related to surety bond: performance 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 ?
This type of surety bond, which functions more like a conventional insurance product, is a popular product in Alaska, according to Pobieglo.
As banks adjust, companies with strong credit profiles may find that conditional surety bonds are a cost-effective alternative to bank letters of credit.
Clients opting for a surety bond will not face charges for failing to use the surety program extended to them by their bonding companies.
By aggressively advertising the lower cost surety bond option, which also provides superior coverage to the much-reduced security deposit specials, Related has been able to compete effectively for prospects while protecting its bottom line.
Khawaja Salman Rafique further said that this policy will be applicable from the current academic year and the successful candidates of public sector medical colleges will have to submit this surety bond.
For more information on the new electronic claim-filing system and SBA's Surety Bond Guarantee Program, visit http://www.
For any and all surety bond support you can contact South Coast Surety through the above websites or contact them direct at 1-800-361-1720.
When a surety bond is secured for a specific purpose, the principal on the bond also becomes an indemnitor in the case of the default of the principal or contractor.
The American Recovery and Reinvestment Act has increased the amount of Small Business Administration-backed surety bonds up to $5 million.
Berkshire also offers its qualified new residents the opportunity to purchase a surety bond.
What's intriguing is how these distinct facts dramatize the cause-and-effect relationship between a tightening surety bond market and poor financial performance at a large public company.