What’s a court bond? It’s a way for courts to hold defendants and plaintiffs accountable for paying financial judgments. When courts require someone to pay and they either can’t or won’t, the person they’re responsible for paying may file a claim against the surety bond. The surety company backing the bond will pay for all valid claims, and then they will collect the amount of the claim (plus interest and fees) from the original bond holder. For the bond holder (known as the principal) court bonds work like a line of credit. And for the beneficiary of the bond (known as the obligee) bonds guarantee they will receive the damages they are owed.
Some veterans require assistance to administer their Veteran’s Administration (VA) benefits. The fiduciary who provides that assistance has an important and sensitive job as the custodian of large sums of money that are critical to the veteran’s care and wellbeing. When VA benefits exceed $20,000, someone must obtain a VA fiduciary bond before they’re allowed to serve as a fiduciary. This is your comprehensive guide to those surety bonds.
When a creditor takes a borrower to court because of an unpaid debt, the creditor may seek what’s known as a garnishment. A garnishment gives the creditor the right to withhold a portion of the debtor’s wages from their employer or assets from their bank account until the amount of the debt is recouped. However, before granting that garnishment, the courts will usually require the creditor to prove they have a garnishment bond, which is a type of surety bond. This article outlines 7 things you need to know:
Across the country, major construction projects plan to either break ground or enter a major new phase over the course of 2020. The COVID-19 pandemic caught everyone off guard and forced some projects to delay or reconfigure. Nonetheless, there are still projects planning to move forward and working to put all the necessary plans and preparations in place before the end of the year – including securing any construction bonds necessary. Here are a few of the notable projects worth following along with:
If you intend to serve as a trustee, you may need to obtain a trustee bond first. Here are some important things you need to know upfront:
Before we answer questions about trustee bonds – one particular kind of surety bond – we should explain some of the terms and concepts involved. First, a trust is a financial vehicle set up during a person’s lifetime or after it as part of their will. Trusts contain funds which are distributed to particular persons or organizations based on terms dictated by whoever established and funded the trust. With a few exceptions, trusts can operate however someone intends.
To answer that question, you need to understand how this particular kind of surety bond works, why the courts require one, and how it affects the parties involved. This piece explores the ins and outs.
If you’re involved in a civil case between a debtor (the defendant) and a creditor (the plaintiff), there may be a writ of attachment bond involved (sometimes just called an attachment bond or plaintiff bond). This piece outlines how the bond works, how it affects all the parties involved, and why the courts consider it so important. Continue reading “How Does a Writ of Attachment Bond Work?”
If someone cannot manage their own affairs due to mental or physical limitations, they may become a “ward” of the state, meaning the government takes responsibility for their care and wellbeing. In this instance, the state will appoint a conservator to make decisions on behalf of the ward, including sensitive financial and potentially also medical decisions. The ward’s family typically appoints the conservator, but in some instances the state may appoint someone. In either case, the person nominated must obtain a conservatorship bond before being officially appointed. If you find yourself involved with this process, this blog outlines 5 things you need to know upfront: Continue reading “5 Things You Need to Know About Conservatorship Bonds”
Every industry is scrambling to adapt to the effects of the COVID-19 pandemic, and the surety bond industry is no different. Officials from two leading professional organizations – The Surety & Fidelity Association of America (SFAA) and the National Association of Surety Bond Producers (NASBP) – are calling on Congress to issue an emergency action altering how bond agreements work. Whether or not these changes will take effect and when remains to be seen. However, in order to keep bond holders and bond applicants alike fully-informed, the experts at Viking Bond Service wanted to keep you informed about the developments thus far. Continue reading “Electronic Bonding: Is a Paperless System Coming?”