Collateral Return

[Mother Bond]

I currently have a bond that I had to put collateral down on to obtain. Will I be able to get my collateral back after a certain amount of time? Or will it be retained until I no longer need the bond?

[Surety Queen]

Originally Posted by Mother Bond

I currently have a bond that I had to put collateral down on to obtain. Will I be able to get my collateral back after a certain amount of time? Or will it be retained until I no longer need the bond?

Generally speaking, the collateral is held for the duration of the bond PLUS an additional term. This additional term could range from six months to two years AFTER the bond obligation has been ended. It's important that you read the Collateral Agreement that you will need to sign to see exactly what the terms are. Remember though, that collateral return is TOTALLY at the discretion of the Surety. And, if there has been any claim activity on your bond, it will directly affect the amount of collateral returned.

[Mother Bond]

Why do they hold on to the collateral for so long?

[Surety Queen]

Originally Posted by Mother Bond

Why do they hold on to the collateral for so long?

To make sure there are no claims filed.

[Bond Magician]

Originally Posted by Surety Queen

To make sure there are no claims filed.

What would happen to collateral if there WAS a claim filed?

[Surety Queen]

Originally Posted by Bond Magician

What would happen to collateral if there WAS a claim filed?

If a claim was filed and paid, it's likely you will not get the collateral back as it will be used to satisfy the claim.