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Under the legal definition of the two terms the definition is virtually, if not actually, identical. Essentially they mean the same thing.
"A surety is a contract under which one person agrees to pay a debt or perform a duty if the other person who is bound to pay the debt or perform the duty fails to do so. Usually, the party receiving the surety's performance will first try to collect or obtain performance from the debtor before trying to collect from the surety. A surety is often found, for example, when someone is required to post a bond to secure a promise."
"A guaranty is a contract under which one person agrees to pay a debt or perform a duty if the other person who is bound to pay the debt or perform the duty fails to do so. Usually, the party receiving the guaranty will first try to collect or obtain performance from the debtor before trying to collect from the one making the guaranty (guarantor)."
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What is the difference between a surety bond and workers compensation?
A surety bond is a form of guarantee. Workers compensation is an insurance program. There is absolutely no relativity.
What is the difference between a bond and a security?
A bond in this context is issued by a surety company and is a form of guarantee. Security can take the form of a cash deposit, an Irrevocable Letter of Credit or a surety bond.
What is letter of surety?
Surety is providing a guarantee for another party. A letter of surety is a document the confirms the terms and conditions of said guarantee. Sometimes called a "Bondability Letter", it declares the name of the entity providing surety and under what conditions surety is proffered. The act of surety is normally demonstrated in the form of a surety bond. The most common bonds are performance, payment, bid, license, permit and financial guarantee.
What is without surety?
Surety is a form of guarantee and "without surety" would imply that there is no guarantee in the case of some event occurs. An example would be where a county probate office accepts a bond of a notary public for filing and there is no "corporate" surety or no individaul to guarantee losses caused by acts of the notary that are contrary to law.
What is a non-surety Bond?
A non-surety bond is a guarantee by the signer for the amount of the bond. There is no cash or property required as collateral. In the court system, a non-surety bond can also guarantee a "promise to appear".
Can you spend a surety bond?
No, a surety bond is a form of guarantee for perfomance or payment, not an investment product.
What is a Counter Guarantee?
A counter guarantee is a guarantee given by the surety to the principle debtor providing him with continuing indemnity against the loss or damage that the surety may suffer on account of default on the part of the principle debtor
What are synonyms for bail?
security, bond, guarantee, pledge, warranty, surety
What is the difference between warrenty and guarantee?
What is the difference between warrenty and guarantee? In: http://wiki.answers.com/Q/FAQ/4423[Edit categories]
What is the difference between surety and surety bond?
The biggest difference between a surety bond and insurance is insurance is a two party risk transfer mechanism and a surety bond is a three party agreement. Insurance creates a pool funded by premiums from a large group of people or companies that are exposed to similar risk. Each individual or company contributes premium and any member of the group that suffers a loss has access to the funds in the pool. Insurance companies expect to experience losses. Surety companies on the other hand do not expect to experience any loss. The premium paid to a surety company is to cover the cost of the prequalification or underwriting process. In the event there is a loss, surety companies expect to be reimbursed for their loss. An irrevocable letter of credit is a guarantee issued by a bank to another party covering non performance or nonpayment of an obligation by a contractor. The bank performs no prequalification service for the beneficiary and is primarily concerned the contractor can pay back any funds that may be advanced under the irrevocable letter of credit. Sureties provide a much greater service to an obligee by virtue of the prequalification process and a bond also provides a measure of protection to the contractor against unjust claims.
Money to guarantee appearance in court?
Bail bond Surety bond. Bail
What is a Another word for bail?
security, surety, bond, payment and financial guarantee.
