Many surety bonds are issued on a fixed term but there are some bonds with specific expiration dates set by the obligee, so it is important that you’re aware of when you are required to renew your bond. There are many bonds that expire on December 31st every year so to avoid a lapse in coverage and potential punitive action make sure to check your bond type and its expiration date.
It is highly encouraged that all surety bond renewals are done before the current term has ended. That way, there is considerably less chance of any issues that could result in a lapse of coverage. Keep in mind that by waiting until the last minute, if there is a lapse in coverage due to the principal’s failure to renew on time the principal may find themselves without the bond coverage necessary, which may result in penalties.
This is especially true for renewals due at the end of the year during the holiday season, when many local government and state offices have more limited hours of operation. We offer surety bonds in all 50 States with a quick and convenient application process to avoid delays. For further information on our surety bond products visit us at bfbond.com, call us at 800.921.1008 or get an application here.
In a Civil Case when an appeal bond is required by the judge, the principle has the option of getting a surety bond or depositing cash in the amount of the bond with the court. Does it make sense to obtain a surety bond or does it make sense to deposit money with the court? And if you do deposit with the court, how long before you get your money back?
Benefits of Posting a bond:
- The benefit of posting an appeal bond is that the bonding company has options to take collateral in form of cash or brokerage account or Letter of Credit, in some incidents if your credit is strong enough, no collateral is required, these options gives you the ability to leverage your money. Of course if your credit is poor, then the collateral options are limited
- If successful in winning the appeal, the funds are returned to you very quick.
Cons of depositing money with the court:
- The courts only accept cash.
- Takes months before the paperwork is processed.
- Access to capital is lost
A client mentioned that he could not meet his financial obligations due to the fact that he had a $400,000 deposit held with the court and they are taking over 6o days to release his funds..
At BF Bond our customer service professionals can address our client’s diverse need which often requires finding creative solutions to these problems. Retrieving deposits from the courts can be a long and arduous process. When faced with a decision like this that may cost you time and money, contact us and we can help make a difficult process much easier.
Complete an application here
Call Jose at 800-921-1008 if you have any questions or to discuss an individual case.