Bonds
There are many reasons to need a bond and there are over 4000 different types of surety bonds to fit your specific use case. We can make sure you get the right bond for your application so you can complete your job. Below you will find a few descriptions of common bond types.
Michigan Bonded Title:
A Michigan Bonded Title (also known as a Michigan Certificate of Title Surety, Michigan Lost Title Bond, or Michigan Defective Title Bond) is a document that proves you own your vehicle. The purpose of a Michigan Bonded Title is to protect any previous owners of the vehicle and the state of Michigan.
You might need a bonded title in any of the following situations, though this not a complete list:
You bought a vehicle and didn’t receive a title
You bought a vehicle and only received a bill of sale
You bought a vehicle and received an improperly assigned title
You bought a vehicle, received, and lost the title before transferring it into your name*
*If you had the title in your name at one point in time, you can get a duplicate certificate of title by completing a duplicate or replacement title application and paying a $15 replacement title fee.
Fidelity Bonds:
There is always the possibility that an employee will steal. Statistics show a shocking increase in employee theft. They also identify theft as the leading cause of small business failure. The only protections against this kind of loss are good internal control, regular outside audits and a Fidelity Bond. Fidelity Bonds are often referred to as “honesty insurance.” They cover loss due to any dishonest act of a bonded employee. The employee may steal alone or with others. The loss may be money, merchandise or any other property, real or personal. The Fidelity Bond is available in a group (blanket) or individual (schedule) form.
Public Official Bonds:
Public Official Bonds guarantee taxpayers that the official will do what the law requires. A public official is expected to “faithfully perform” the duties of the office. For this reason, bonding public officials is highly important. It isn’t enough to simply buy honesty insurance. “Faithful performance” is not synonymous with “honesty.” It may include honesty along with many other important factors. For instance, a county treasurer may have lost funds through a failure of a bank he thought was sound. If the treasurer did not obtain proper deposi- tory security, he could be held liable for restitution. The county treasurer could easily prove that he did not act “dishonestly.” However, he would have diffi- culty proving that he “faithfully performed” his duty. Public Employee Bonds are also available for bonding the subordinates of the public official (those people who are not required by statute to be bonded). Those subordinates need to be bonded for dishon- esty only. Public Official Bonds may be written for individu- als or, where the law allows, on a blanket bond form.
Judicial Bonds:
Judicial bonds are written for parties to lawsuits or other court actions (plaintiffs and defen- dants). In anticipation of a favorable judgment, plaintiffs often want to take possession of the property, cash or merchandise in question without waiting for the trial. Those who are financially reliable can often 2. 3. achieve that goal by posting a plaintiff’s court bond.
Fiduciary Bonds:
A fiduciary is a person appointed by the court to handle the affairs of persons who are not able to do so themselves. The fiduciary is often called a Guardian or Conservator if he handles the affairs of a minor or an incapacitated person. An Administrator is a fiduciary who handles the affairs of some4. one who has died; he or she is known as an Executor if specifically named in the will.
License and Permit Bonds:
A business takes few actions today without governmental permit or approval. Many of these government permits are granted only after the business posts a bond guaranteeing compliance with laws, ordinances, and regulations. License and Permit Bonds “put teeth” into the laws passed for public protection. For example, sewer builders must conform to city sanitary regulations. They must give a bond to guarantee compliance with city regulations. If they do not comply, the surety pays damages or ensures compliance. The surety’s great care in selecting its risk helps insure that only capable sewer builders will be licensed. License and Permit Bonds are divided into five classes: (A) Those designed to protect the health and 5. safety of the public, e.g., a sewer builder. (B) Bonds required of an individual who has been granted some public privileges which may become a hazard to the general public, e.g., hanging a sign over the street. (C) Those bonds which protect the public against loss of money or goods entrusted to the licensee, e.g., real estate broker, public warehouseman, etc. (D) Those required of businesses highly susceptible to unscrupulous practices, e.g., small loan companies, motor vehicle deal- ers. (E) Bonds which guarantee payment of taxes collected, e.g., gasoline tax bonds, sales tax
Contract Bonds (Bid, Performance and Payment Bonds):
Bid Bonds Bid Bonds are usually the first step in a bonded contract process. Each bidder for a contract must guarantee the price bid by posting a certified check 6. or indemnity bond, which is forfeited if the contractor fails to enter into the contract awarded. Usually the amount forfeited is the difference between his bid and the next lowest bid. The charges for Bid Bonds are nominal so as to encourage contractors to use Bid Bonds rather than certified checks. Bid Bonds guarantee that the contractor will enter into a contract at the amount bid. When he does this, the Bid Bond is released. Performance and Payment Bonds
Typically issued together, Performance and Payment bonds are usually referred to collectively as “final” bonds. The Performance Bond guarantees performance of the terms and conditions of a contract. Payment bonds cover payment by the contractor of labor and materials used in the bonded project. It may be for the construction of a building or road or it may be a supply contract. It may be a transportation contract or almost any kind of contract where one party might experience harm if the other party fails to perform. These bonds are largely the result of governmental and other public bodies which are required by law to award contracts for public work to the lowest responsible bidder. The requirement of a Performance Bond and the screening process which the surety must do, eliminates unqualified contractors before the bidding process begins. Performance Bonds are also frequently required in the private sector and by General or Prime Contractors of their subcontractors working on a bonded project. The bonds cover completion of the work and payment of all labor and material costs.
Miscellaneous and Federal Bonds:
There are almost as many categories of surety bonding as there are categories of agreements, contracts and situations where people may fail to per- form as promised. Some of these are: (A) Bill of Lading Bonds, Adoption Bonds, Fi- nancial Responsibility Bonds and Travel Agency Bonds. (B) Lost Securities Bonds. (C) United States Excise Bonds. (Incudes Brewer’s Bonds, Distiller’s Bonds, Indus- trial Alcohol Bonds, Wine Maker’s Bonds, and Tobacco Manufacturer’s Bonds.) (D) Custom Bonds. (Includes Importer/Ex- porter Bonds, Carrier Bonds, and Warehouse Bonds)