Learn All about the Types of Commercial Bonds!
August 7, 2012 by admin
There are literally hundreds of different types of commercial bonds that an individual or a company may take out from surety bond companies. Below are just some of the types of commercial bonds commonly used by individuals and companies alike.
Mortgage Broker Bonds
Mortgage broker bonds are mandatory bonds that financial institutions such as credit unions, banks and mortgage companies must provide to an individual or a company. This bond guarantees the individual or company the integrity and validity of the broker’s license used by such institutions, protecting the individual or company taking out a mortgage.
Auto Dealer Bonds
Auto dealer bonds, also referred to as MVD bonds, provide assurance to the legality and credibility of an auto dealer with regards to the different types of vehicles that they sell to their customers as well as the different parts and services that they provide.
Medicare bonds provide protection for both the healthcare provider company from the increasing amount of medical claim’s fraud and malpractice committed by many individuals in the country today. At the same time, this type of bonds protects the welfare of their clients by ensuring that the company supply them with quality medical equipment and supplies.
Sales Tax Bonds
Sales tax bonds are surety bonds between a company and a government institution providing assurance that the company would fulfill all of its sales tax obligations to the government.
One of the most common types of surety bonds used by courts is bail bonds. Bail bonds are taken out by an individual who has been charged of a particular offense in order to be granted temporary freedom up until the beginning of the actual court hearing. These are usually done with a bail bondsman serving as the surety of the bond, who guarantees that the defendant would appear all throughout the entire trial.