Is this a Fidelity Bond?

[Bond Guy]

I have a Buyer for my restaurant business but he doesn't have enough assets to secure the promissory note I will be holding. I need more security in case he defaults. Does a Bond make sense in this case and is one available?

[marietta68]

I have a Buyer for my restaurant business but he doesn't have enough assets to secure the promissory note I will be holding. I need more security in case he defaults. Does a Bond make sense in this case and is one available?

This type of bond would be a guarantee of a loan repayment and is not a fidelity bond. Further, it's not a surety bond that could be written by any of the national sureties because of certain restrictions in New York (commonly referred to as the "Appleton law"). Your promissory note should contain provisions for repossession in the event of a default - you're describing a business risk, exactly like the one banks engage in with every loan they make.