Letter of Credit Archives • Pedersen & Sons

Self-Insured Retention Plans

by admin | Dec 1, 2023 | Retention Plans, Surety Bonds

Self-Insured Retention Plans often require security to be put up against the self-insured portion of the plan. Insurers agree to take a risk over a certain level, provided the company retains the risk below a certain level. Insurers are willing to do this because...

Where is Collateral Held?

by admin | Oct 25, 2023 | Collateral, Surety Bonds

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...

Surety Bond vs Letter of Credit

by admin | Sep 27, 2023 | Surety Bonds

I recently had several situations where a client put up a letter of credit for an obligation that could have used a surety bond instead. A letter of credit is issued by and is the obligation of a bank. Many clients have a relationship with a bank, but not with a...

Self-Insured Retention Plans

Where is Collateral Held?

Surety Bond vs Letter of Credit

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