SURETY BONDS: OFFERING PROTECTION FOR CONSUMERS

SURETY BONDS: OFFERING PROTECTION FOR CONSUMERS

A surety bond is a promise by a surety, or guarantor, to pay a first party a certain amount if a second party fails to meet an obligation, such as fulfilling the terms of a contract.  In this way, the surety bond protects the first party against losses resulting from the second party’s failure to meet the obligation.  When a second party breaks a bond’s terms, the first party can make a claim on the bond to recover losses from the surety company that issued the bond.

Below are a number of examples where surety bonds are either required or may be useful.

A surety bond is required if an individual applies to become an Illinois Notary Public.  A Notary Public is licensed to validate the identity of someone signing a document.  Illinois law requires all Notaries to purchase and maintain a $5,000 Notary surety bond.  The Notary bond protects the public of Illinois against any financial loss due to improper conduct by the Notary.

Must in the same way, all Illinois private investigators or private detectives must be bonded.  This again covers damage to the State of Illinois or the public to ensure that the private investigators business is ethical and in compliance with state law.

All auto dealers in Illinois are required to be bonded through a motor vehicle dealer surety bond. A motor vehicle dealer bond is required to protect consumers and the state from any fraud or unethical business conduct by the auto dealer that results in monetary loss for the consumer or state.

A surety bond may come in handy if you do not have acceptable evidence of ownership for, or have the title to, your automobile, boat, or motorcycle.  Illinois permits you to provide it with a Certificate of Title surety bond in order to get a new title to properly register your vehicle.  This bond amount must be in an amount equal to one and one-half times the current wholesale value of the vehicle.

Finally, surety bonds are common within the construction industry.  All contractors licensed in Illinois must have a contractor’s license bond.  If a consumer makes a claim against the bond for unethical or fraudulent behavior by the contractor, and the claim is deemed legitimate, the surety company will likely pay the consumer up to the amount of the bond.

If you are in a situation where you believe you may or know that you do require a surety bond, local attorney Andrew Szocka provides thorough and speedy surety bond assistance in the Chicagoland area.  To schedule a free initial consultation, visit the Law Office of Andrew Szocka, P.C. online or call the office at (815) 455-8430.

 

 

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