Letter Of Indemnity

Finance allah shmoop What is a surety bond Think sure

It t like certainty Remember when you were a kid

at summer camp and had to pony up a buck

to prove your heavy roller status at friday night's poker

game And then there was a buddy who promised to

pay more than that if you lost more than your

buck Well surety bonds air kind of like that We

repeat kind of a surety bond is an agreement between

three parties One party guarantees that a second party will

fulfil a promise to the third party For example one

signer might guarantee that a small business will honor a

government contract That is that small business will have to

go borrow a whole bunch of money to go build

a bunch of fence wire stuff for the government that

they would need somewhere in the south And then some

bigger contractor would guarantee that that small business will in

fact perform on the contract If the small business doesn't

perform the contract like as guaranteed building whatever fencing materials

and the government wanted to build will the person who

signed on their behalf would likely have to either pay

up or build the fence themselves The big guy i

either guarantor gives the little guy the principal surety in

delivering the contract to whoever wants it toe happen A

k a The oblige g remember that song about the

government there yet oblige E ope elijah Life goes on

Sorry we're done anyway all the parties involved bond with

certainty the delivery of whatever product or service that surety

bond is standing behind So yeah that's what it is 00:01:36.669 --> [endTime] And don't call us surety