Depository Bond — Guarantees Bank Deposits Outside of FDIC Insurance
Section 345B of the bankruptcy code provides for an undertaking to guarantee the deposits in bank accounts outside of FDIC insurance. It’s essentially a depository bond related to bankruptcy, and the guarantee is that the monies will be accounted for and...
Where is Collateral Held?
A common question asked of my office is where is the collateral held. First, let us go through the four types of collateral. 1. Cash Deposit When you are depositing cash, it is wired to the surety company, which holds it pending the resolution of the matter. The cash...
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...