Miscellaneous bonds include any bonds that do not fall under the other main bond families.
PATIENT TRUST FUND BONDS
Patient or Resident Trust Fund bonds are required from any facility that manages the personal funds of its residents in excess of $100 ($50 for Medicare residents). They guarantee that the principal will hold separately and in trust all patients’ funds deposited with the care facility. The care facility will administer the funds on behalf of its patients in the manner directed by law.
UTILITY DEPOSIT BONDS
Commercial businesses are often required to post a deposit with their utility company to guarantee payment for service. The business owner can post a surety bond, an irrevocable letter of credit or a cash deposit.
Utility Deposit Bonds are typically used in place of the irrevocable letter of credit or cash deposit. The bond is a financial guarantee that promises that the business owner will pay their utility bills on a timely basis. If the utility bills go unpaid, the utility can make a claim on the bond for the amount due.
LOST SECURITIES BONDS
Fixed penalty lost securities bonds are needed when a check or bond/stock certificates are lost or misplaced. The financial institution involved agrees to pay the amount of the lost security in exchange for a surety bond. The bond shall not exceed two times the face value of the lost security.
UNION WAGE AND WELFARE BONDS
Union wage and welfare bonds guarantee the payment of wages or wages and/or fringe benefits from the employer to the union. It is a financial guarantee bond.
OTHER MISCELLANEOUS BONDS
- ARC- Airline Reporting Bonds
- Concessionaire Bonds
- Contractors Indemnity for Withdrawal of Retained Percentage on Construction Contracts
- Lottery Bonds
- Turnpike Toll Bonds
HOW DO I GET A SURETY BOND?
Surety bonds are issued by Merchants Bonding Company (Mutual) through insurance agents. Contact your local insurance agent or use our Find an Agent tool. They will guide you through the process, informing you of what documents and information are needed by the surety (Merchants Bonding Company (Mutual)) to underwrite your bond.
WHAT IS A SURETY BOND?
A surety bond is a three-party agreement that ensures the fulfillment of a commitment or contract. For instance, the surety (Merchants Bonding Company (Mutual)) may provide a surety bond to a construction company (the principal) which is required by the state (the obligee), ensuring the construction company will perform the duties as outlined in the contract. In bonding the construction company, Merchants assumes the risk should the company default or not fulfill their contract. A surety bond is different from traditional insurance in that the principal is obligated to pay back the surety company on any claims paid out.
All information provided is subject to change.