Co-Signer Responsibility

[Mr. Bond]

I have agreed to be a co-signer for a friend in order for them to obtain a bond. Does this mean that I'm on the hook if a claim is paid out by the surety?

[Bond Guy]

Yes you would also be responsible for the bond of the person you cosigned for. You will do the same application and credit check as the applicant. The cosigner helps guarentee the Surety Company would be paid should a claim arise.

[Surety Queen]

Originally Posted by Bond Guy

Yes you would also be responsible for the bond of the person you cosigned for. You will do the same application and credit check as the applicant. The cosigner helps guarentee the Surety Company would be paid should a claim arise.

Just a word of caution - you want to be very careful about co-signing for someone else's bond responsibilities. That's not to say you shouldn't do it - just make absolutely sure you trust the personal you are co-signing for.

[Mother Bond]

Originally Posted by Bond Guy

Yes you would also be responsible for the bond of the person you cosigned for. You will do the same application and credit check as the applicant. The cosigner helps guarentee the Surety Company would be paid should a claim arise.

Would they seek payment from the company first, then work their way down the line... or would all the indemnitors be hit all at once?

[Surety Queen]

Originally Posted by Mother Bond

Would they seek payment from the company first, then work their way down the line... or would all the indemnitors be hit all at once?

When a claim is paid out on a bond, Surety would go to the company first. However, if the company has gone under, they would then go to the individuals who personally indemnified to the Surety - including the co-signer.

[h2o]

In the event of a claim, would they notify me of the amount due and so I could remit payment? Or would they go right to a lawsuit in order to collect the moneys owed?