Performance Bond

Rosalio asked this on June 19, 2018 in Performance Bonds

How/what do surety bonds company do to secure (collateralize) a contractor's performance bond? Do you filing a UCC-1 on the contractor's business asset or Accounts Receivable?

Jon answered this on June 19, 2018

Rosalio,

If collateral is required by the surety company to issue the bond, it will be collected via a cashier's check or irrevocable letter of credit.