Bonds

With over 100 years of experience working with business owners, Home Loan has a proven track record. We are known both for our responsiveness and for our ability to accomplish the impossible. Our goal is to create a readily accessible bonding program that is easy and efficient to utilize, allowing you and your company to focus on your growth.

Our bonding expertise allows us to write and issue a variety of bonds; from contract and commercial surety bonds for tradesmen, contractors, real estate developers, wholesalers, and individuals, to standard license and permit bonds for local, state, and municipalities.

Want to learn more about bonds, click here.

Overview of Bonds

Surety Bond:
A surety bond is an agreement under which one party, the surety, guarantees to another, the owner or obligee, that a third party, the contractor or principal, will perform a contract in accordance with contract documents or fulfill the obligation according to the agreement.

Construction Bond:
A construction bond is guarantee by a third party (insurance carrier or surety) to finalize construction in accordance with the terms of the contract in the event the contractor fails to perform according to the terms of the contract.

Types of Construction Bonds:

Bid Bonds:
Provides a financial guarantee that a bid has been proposed in good faith. When a surety issues a bid bond to a contractor, they are assuring the contractor will enter into the contact at the bid price. It supports that the contract is qualified for the necessary Performance and Payment bonds.

Maintenance Bonds:
Guarantees against faulty workmanship and materials for a specific period of time.

Payment Bonds:
Guarantees the contract will pay the suppliers, laborers, and subcontractors involved in the project.

Performance Bonds:
Is required by the owner (obligee) to insure against loss in the event the contractor (principle) is incapable of performing and fulfilling the contract according to its terms and conditions.

Commercial Bonds:
Can be required by commercial business entities (contracts other than stick and bricks builders) such as: non-profit groups, distributors, suppliers, etc.

Legal regulations for Federal, state, and municipalities can require various commercial bond obligations. These may guarantee compliance on the part of individuals to follow certain rules or legal requirements.

Types of Commercial Bonds:

License and Permit Bonds:
State or local laws require License and Permit bonds be issued to operate certain types of businesses such as streets, sidewalks, gutters, and drainage systems.

Public Official Bonds:
Guarantee the performance of duty of a public official such as sheriffs, judges, clerks, and notaries.

Miscellaneous Bonds:
Do not fall in any of the categories. These bonds can be more hazardous obligations and require extensive underwriting; some of these include lease bonds, lost instrument bonds (i.e. lost water stock, lost title, lost note, lost deed of trust), concessionaires bonds and more.

Court Bonds:

Judicial and Probate Bonds:
Secure the duties and their compliance with court orders. They guarantee the honest accounting and faithful performance by fiduciaries and/or trustees. These bonds are required by courts to assure individuals are appointed to set up and administer estates of deceased persons, incompetent persons and/or minors. They include administrators, executors, guardians, and trustees of wills.

If there is a type of bond that you don't see here, please call our Bond Specialists, Sean Hazelhurst (970-254-0839) or Darren Coltrinari (970-254-0828) and they'll be more than happy to assist you!

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