Surety Bonds in New Mexico
Before you can finalize many official agreements in New Mexico, you may need to secure a surety bond in NM. These requirements are more common than you might think – and probably easier to comply with than you might expect. This guide outlines everything you will want and need to know.
How Does a Surety Bond in New Mexico Work?
A surety bond makes someone accountable for misconduct that breaks the law or violates contractual terms. In the event of misconduct by the bonded party (AKA the principal), the negatively affected party (the obligee) may file a claim for damages against the bond. The agency that issues and backs the bond (the surety) will investigate whether the details of the claim are true. Provided they hold up, the surety guarantees a settlement to the obligee, immediately and in full. However, the principal must repay the surety the settlement amount with interest and fees included.
Types of New Mexico State Bonds
Most surety bonds types fall into one of four categories:
- Commercial – Surety bonds required to get a professional or business license.
- Contract – Surety bonds necessary to finalize a contract, often in the construction industry.
- Court – Surety bonds mandated by a court for either the plaintiff or defendant to obtain.
- Fidelity – Surety bonds a business obtains voluntarily to protect the business and its customers from employee misconduct.
Who Needs a Surety Bond in New Mexico?
If you work in the construction industry, especially on large-scale or government building projects, there's a good chance you will need a surety bond. Likewise, if you are in an industry or career that requires a license. Though some people are more likely to need surety bonds than others, anyone may potentially face surety bond requirements in a situation where one party needs to establish trust in another. If and when those requirements appear, contact Viking Bond Service to fulfill them.
How to Get a Surety Bond in New Mexico
Some surety bond types have more application requirements than others. For instance, a limited number require a bond seeker to put up collateral. For most, however, this is the only information necessary to obtain a surety bond:
- A completed application
- A credit check
- A copy of the surety bond requirements
- Any additional documents the surety requests
The Cost of Surety Bonds in New Mexico
Expect to pay a small percentage of the bond's total value as the cost of a surety bond in NM. Exactly how much depends on the bond seeker's credit. Lower credit scores or financial blemishes like a bankruptcy will lead to higher surety bonds costs. However, with the help of the bad credit surety bond program from Viking Bond Service, challenged credit doesn't have to mean getting denied for a surety bond. We make it easier for people throughout the state to meet bonding requirements and obtain NM surety bonds no matter their credit situation.
Do You Need to Renew Surety Bonds in New Mexico?
Some bonds need to be renewed, especially commercial bonds. The surety will re-assess credit risk during renewal (after one year) and quote a new premium price accordingly. Therefore, the bond may cost less or more than it did before.
Viking Bond Service – Your Source for Surety Bonds in New Mexico
As a nationwide surety agency with years of industry experience and clients all across New Mexico, Viking Bond Service knows exactly what you need. Let us take the hassle and confusion out of the process of getting a surety bond in NM. Request a quote at any time to get a number back in under 24 hours in most cases. Or contact us with questions at the link or by calling 1-888-2-SURETY (1-888-278-7389).
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