Our bonding solutions range from Performance Bonds, to our Repayment Guarantee bonds, all complementing and facilitating the funding of our Clients projects. We work closely with international banks, fund managers and corporate bond holders to provide added mitigation to their funding position.
What is Surety?
Surety is a form of financial credit, known as a bond guarantee. The transaction always involves three parties: the beneficiary, the principal, and the surety. The surety bond is a written promise, to pay for direct loss, or damage, suffered by the beneficiary, as a result of a breach of contract.
The surety assumes the obligation, if the principal cannot.
A surety bond protects the beneficiary (the party to whom the bond is paid to in the event of a default) against losses, up to the limit of the bond, that result from the principal’s (the party with the guaranteed obligation) failure to perform its obligation.
Surety bonds are designed to ensure that principals act in accordance with certain laws. They provide beneficiary, with financial guarantees that contracts and other business deals will be completed in accordance with mutual terms.
If the principal breaks those terms, the harmed beneficiary can make a claim on the surety bond, to recover losses incurred. The surety company then has the right to reimbursement from the principal in the case of a paid loss or claim. The surety bond will always require 100% security.