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Commercial surety bonds serve as a guarantee for the principal’s performance of specific obligations or undertakings outlined in the bond. Here are the different types of commercial surety bonds:

• License and permit bonds: These bonds are mandated by state laws or local regulations and are necessary to obtain a license or permit for engaging in a particular business. Examples include bonds required for contractors, motor vehicle dealers, securities dealers, employment agencies, health spas, grain warehouses, liquor sales tax, etc.

• Judicial and probate bonds (fiduciary bonds): These bonds ensure the proper performance of fiduciaries’ duties and compliance with court orders. They are applicable to administrators, executors, guardians, trustees of a will, liquidators, receivers, and masters. Judicial proceedings court bonds encompass injunction, appeal, indemnity to sheriff, mechanic’s lien, attachment, replevin, and admiralty bonds.

• Public official bonds: Public official bonds provide a guarantee for the faithful performance of duties by a public official. They are commonly required for treasurers, tax collectors, sheriffs, judges, court clerks, and notaries.

• Federal (non-contract) bonds: These bonds are mandated by the federal government and are applicable to various entities. Examples include bonds required for Medicare and Medicaid providers, customs, immigrants, excise, and alcoholic beverages.

• Miscellaneous bonds: This category encompasses a range of bonds that serve different purposes. It includes bonds for lost securities, lease agreements, guaranteeing payment of utility bills, ensuring employer contributions for union fringe benefits, and providing workers’ compensation for self-insured entities.

These commercial surety bonds offer protection, compliance, and financial security in various business and legal contexts, ensuring that obligations are fulfilled and duties are performed as required.