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Originally Posted by Numbers Since subdivision bonds are non-cancellable, what happens when a renewal isn't paid? |
The indemnity agreement you signed when the bond was written included your commitment to pay premiums when due. If you fail to do so, the bond company may elect to file suit or simply use the application to make a UCC filing against you or your business. This would affect your credit report and would prevent you from obtaining future bonds.
If you don't want to pay the renewal premium, it's preferable to arrange for the final inspection to obtain the bond's release.
02-15-2008, 04:22 PM
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