Surety Bond
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Definition
Aug 17, 2023 - A surety bond in boating terms can be defined as a third party guarantee of performance or validity with respect to boat titling and purchase transactions. These are provided by established bonding companies that function in a similar manner as those providing insurance.
Context
Surety bonds in the marine industry are required by certain states with regard to the issuance of questionable boat titles. They are intended as protection for any subsequent owners, lenders, and other parties of interest from any respective title defects or challenges. Bonding is also required of licensed boat brokers and escrow service providers in many state jurisdictions. There are however, other circumstances in which bonding may come into play. These involve contractual arrangements where one party has concerns about the viability of another in making good on any representations, warranties, guarantees, or promises.
Conclusion
Affected parties should investigate the type of coverage provided by a surety bond and the reputation of such provider. Any concerns in this regard should be addressed by a qualified attorney.
Credits and References
Aug 17, 2023 - Page revised.
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