Important Facts about Surety Bonds
November 28, 2012 by admin
A surety bond is an agreement between two parties, which ensures the safety of the rights of the customer in case any fraud or scam happens. The loan is given only after a guarantor is produced who becomes responsible for repayment in case the borrower fails to repay the amount. The companies get a surety bond signed by their newly recruit employees under which the employee signs a bond for a particular amount backed by a guarantor. If the employee leaves the organization after his employer has trained him on professional services or technology, which obviously has cost money to the employer, then the company can ask the guarantor to pay the money agreed upon in the bond. This protects the rights of the employer because if the employee leaves the organization without doing any productive work for the organization then there has to be some law that should protect the rights of the employer. The surety bonds serve this purpose. A Surety Bond ensures that the bonded party works efficiently for the benefit of the other party. However, the surety bonds are offered to any individual or organization against strong and healthy credentials only. A good background, debt free economical status is the pre-requisites to get a Surety bond.