surety bond


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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 ?
In recent years SBA has taken a number of steps to reinvigorate its Surety Bond Guarantee Program and make it easier for small businesses to obtain bonds.
Imposing a surety bond will lead to fewer DMEPOS diabetic supplies providers, especially in rural areas.
A Delhi court granted bail to him on Tuesday, dismissing the NIA's claims that he was involved in stone-pelting and subversive activities in occupied Kashmir and granted him bail on two surety bonds of Rs 50,000 each.
In terms of pricing, surety bond premiums vary according to the contractor's financial health and wherewithal.
Schubert uses Ballenger's demise as an illustration of the importance of surety bonds.
As banks adjust, companies with strong credit profiles may find that conditional surety bonds are a cost-effective alternative to bank letters of credit.
The new entity, which will operate under the name SterlingHyde Group, will provide comprehensive solutions focusing on the placement of multi-million dollar construction insurance and surety bond programmes, the pair said.
Clients need to be strategic in their decision making, particularly in an environment when more businesses may be required to post security in the form of a bank letter of credit or surety bond.
The company quickly realized the universal marketing appeal of a surety bond, even under a variety of market conditions.
While NACDS president and chief executive officer Steve Anderson acknowledges that the new regulations requiring sellers to become accredited and attain a $50,000 surety bond will help cut down on the rampant fraud that has plagued the Medicare system, he says the new requirements will make it difficult for many community pharmacy chains to continue selling durable medical equipment (DME).
SBA says new rules will make its Surety Bond Guarantee Program more attractive to sureties and small contractors.
WHILE MUCH HAS BEEN MADE over a potential requirement that life settlement brokers and providers obtain a $250,000 surety bond in the proposed update to the National Association of Insurance Commissioners' viatical model act, one speaker at the Life Insurance Settlement Association's spring meeting here argued that such bonds are not so great a threat as they have been made out to be.