Collateral

[Harley]

Why is collateal taken and is it necessary?

[Admin]

It is taken to reduce liability for the bonding company. It is rarely necessary, but it depends on the applicant.

[apprentice35]

I have a bond that expired two months ago and I want my collateral back. What is the process and how long does it take?

[PT]

Originally Posted by apprentice35

I have a bond that expired two months ago and I want my collateral back. What is the process and how long does it take?

Depending upon the collateral agreement that you signed, it could be between 6 months and two years before your collateral is returned. If you aren't sure, call your agent and ask them to check the file to see what the terms were. Let's say it's a 1 year requirement - what happens is that the collateral is held for a minimum of 1 year AFTER the bond is no longer in force. So, if your bond cancellation date is 9/1/07, Surety will not start the collateral return process until 9/1/08 and it can take a few weeks to get through their system. It's really at the discretion of the Surety Company.