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We Need Collateral!
One of the favorite things surety bond agents love to say is either “No,” or "We need collateral." If you approach somebody who does not know or is not familiar with this specific type of bond, the default is to say: No surety is writing this bond. We are not aware of...
Indemnification Agreement and the Payment of a Bond Premium
Surety bonds are issued regularly, with the various terms and requirements of the bond put in place. Sometimes collateral can be required either by the client offering such or a surety requiring it. Sometimes attorneys and clients want to know why a surety still...
Can an Attorney Hold Funds in Escrow as Collateral for a Bond?
Recently I was contacted by a client and the discussion was whether or not a surety bond company would allow an attorney to hold cash in their attorney escrow as collateral for a bond. Ten to 15 years ago, this used to be a common practice. The reason why was because...
We Serve Our Client’s Needs No Matter the Size of the Bond
My office regularly gets approached about small bonds, such as $500, $1,000, $5,000, $2,500, and $10,000. These are often referred to as nominal bonds since they are so small. Whatever the amount, we appreciate the opportunity to work on the bond regardless of the...
Execution and Signing of Estate Bonds
Today, I want to talk about the execution and signing of estate bonds or any fiduciary bond such as a trustee bond for a supplemental needs trust, administration of an estate or a guardianship, and the problems that arise when you have more than one fiduciary. In most...
Surety Bonds and Cryptocurrencies
Surety bonds and cryptocurrencies generally do not mix well. With the current state of affairs in the cryptocurrency market, surety companies that have previously been crypto-friendly are canceling bonds. Some of these surety companies are refusing to do business with...
Money Transmitter Bonds
Money transmitter bonds are required in various states for entities that obtain licenses to transmit money. Generally, these bonds are looked at as not risky, but given what's happening in the banking sector and the cryptocurrency market, a lot of surety markets are...
Depository Bonds
Depository bonds are a type of surety bond. These bonds guarantee that deposits over the FDIC limits are safe. The bond is a source of payment to certain depositors if the bank collapses. Given what's happening in the banking system, many sureties are canceling, not...
ERISA 4204 — Withdrawal of Liability Bonds — Part 2 of 2
When you agree to obtain a bond on behalf of the buyer or seller, you should determine who the bond principal will be. The bond principal must sign the bond. In order for the surety to issue the bond on behalf of a bond principal, they require their indemnity through...
ERISA 4204 — Withdrawal of Liability Bonds — Part 1 of 2
The ERISA 4204 section comes into play when an employer ceases covered operations under a multi-employer plan or ceases to have an obligation to contribute to such operation because of a bonafide, arms-length sale of assets to an unrelated purchaser who does not recur...