There are surety bonds used for a number of purposes. From bail bonds to Utility Bonds in Arizona, there is no shortage of companies that require a bond to ensure payment of services. Why a bond is needed will vary, and the size and type of bond will vary as well.
For example, a utility bond is usually required by a utility company when starting a service for a large company for the first time. The bond is put into place to cover the cost of utility services should the company default on a payment. For residential customers, a utility company usually doesn’t require a bond, as the amount needed to secure services won’t be that high. Someone who needs residential services for the first time will likely just have to put down a deposit equal to using the utilities for one month.
Construction companies will usually need several surety bonds. These bonds will go to each of their suppliers to cover costs should the construction company default on payments. Most construction companies work on a 90-day payment cycle to repay their debts. When working with a vendor for a lot of product, such as concrete or lumber, a bond offers a level of protection for the vendor.
Bail bonds are also a type of surety bond. In this case, the bond is used to ensure the defendant in a case returns for their court date. If they don’t, they are out any cash put into the bond and any collateral used to secure the bond. This is the most familiar type of bond to the average person.
Colleges also have to maintain surety bonds. In this case, it’s held by the state in which the college resides. If the college closes its doors, for whatever reason, the bond will help to cover some of the reimbursement costs to current students. If there are no reimbursements to be made, the college will get the money that was held in the bond.
Whether you need Utility Bonds in Arizona or you’re trying to get someone out of jail, having a good bond resource is important. If you’re looking for a company to provide you with a bond service, check out website. You’ll find they offer extensive bonding services as well as an in-house notary to help streamline the process.
