Bail bonds and surety bonds for companies and individuals

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The Bonds Branch provides fidejussory policies with which the guarantor company undertakes, in favor of the public administration or private individuals, to guarantee the fulfillment, by the contractor, of obligations deriving from laws or contracts – which include obligations to do, of behavior or to give as long as they are based on regulatory provisions.

Therefore the sphere of application of the Branch must be identified in the context of the existence of a legal relationship, deriving from law or contract, which provides for the provision of a security in the form of a surety policy. Moreover, the Bonds Class, compared to the traditional classes, is not influenced by random factors dependent on the height in the sense that it is not based on the actuarial determination of the risks of loss deriving from unknown or contingent events but, on the basis of preliminary investigation principles, borrowed it also starts from the banking system, designed to verify the technical and organizational capacity of the company requesting the guarantee.

What is the security deposit?

What is the security deposit?

The security is the guarantee, characterized by the deposit of the cash amount in favor of the creditor for the eventual failure to fulfill the contractual obligations by the debtor and which, by virtue of legal or contract provisions, can also be given in the form of a surety policy or a bank guarantee.

What is the surety policy?

What is the surety policy?

It is that contract by which the guarantor company (authorized to operate the Bonds Branch), upon payment of a prize, undertakes personally to guarantee the fulfillment of the obligations assumed by the contracting party (principal debtor) towards the beneficiary ( creditor). As can be seen, the figure of the surety policy is borrowed from that of the surety (personal guarantee) so much so that the Civil Code (art. 1936) defines the surety as “one who, by obliging himself personally to the creditor, guarantees the fulfillment of a obligation of others “.

Function of the surety policy

Function of the surety policy

The surety policy fulfills two functions: the compensation and the replacement function. Compensation function since the guarantor company, due to the contractor’s default, is required to repay a mere patrimonial damage to the beneficiary. Replacement function because it intervenes every time a person (principal debtor) called upon to fulfill obligations towards the beneficiary, by virtue of law or contract, can resort to the surety policy as a substitute for the more expensive security deposit.

Application of the surety policy

Application of the surety policy

For what reason the principal subject, in order to meet his obligations towards the beneficiary / creditor, can resort to the insurance surety in place of the payment of the amount by deposit?

The reason for the substitution mechanism of the security is to be found in the recognition by the State – through the creation of a series of suitable regulatory sources – of the possibility for the surety policy to replace the security and to have the same citizenship and value as the bank guarantee. Just think of the Public Procurement Code which, with regard to participation in tenders, recalls the possibility, on the part of the competitor, to provide surety also in the form of a surety policy (Article 75, Legislative Decree 163/2006).