Indemnity

[Phillies]

After we have our bond, are we obligated to notify you if there is a change in ownership? If so, what happens then?

[Admin]

Yes, the surety will want to know about changes of ownership. If the new owner has more than a 5% share the surety will usually want to see a credit report and personal financial statement on the individual to ensure the business is still a good risk.

If the surety is still willing to back the bond they will require the new owner to personally indemnify. If the surety feels the new owner makes the bond a bad guarantee, they will exercise their right to cancel the bond (provided they have the right).