Bond Insurance
This is a contract issued under seal by an insurer or other institution such as banks, which commits the issuer to paying a sum of money if the conditions of the bond are broken.
Types of Bonds Include
IMMIGRATION / SECURITY BONDS
Immigration or Security Bonds are issued to non-citizens whose conduct insurers guarantee.
Should one fail to be of good conduct it insures the cost of deportation or the consequences of their bad conduct.
PERFORMANCE BONDS
This bond guarantees the performance of a contract ,the Principal is compensated by the Guarantor when the Contractor fails to complete a contractual work
ADVANCE PAYMENT BOND
This bond protects one who has provided a contractor with some money to purchase, for example, construction materials if this does not happen.
TENDER BOND / BID BONDS
These are used when the cost of new tendering has to be incurred by way of re-advertisement should the highest bidder fail to take up an offer
CUSTOMS BONDS
Customs bonds ensure that dutiable goods on which no duty has been paid do not find their way into the local market.
In this unlikely event , the insurers will meet the duty the principal may not have paid
COURT/ ADMINISTRATIVE BONDS
These are used when a court has the responsibility of administering the affairs of persons unable to do so for themselves for some reasons, for example, mental incapacity. The court appoints a receiver to manage the affairs of the estate of the person, the receiver to provide a bond that will take care of maladministration that may arise.
OTHER TYPES OF BONDS INCLUDE:
- Warehouse Bonds
- Exportation Bonds
- Transit Bond
- Defective Title Bonds
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csiinfo@csi.co.ke