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surety bond

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.01 sec.
surety bond
A legal instrument under which one party agrees to answer to another party for the debt, default, or failure to perform of a third party.


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According to Israel Mata, Regional Manager at Related, "Seventy percent of our residents in California already opt for the surety bond over paying a traditional security deposit at lease signing because they do not want to put up all that money up front.
State and federally funded projects require under the Miller Act (Federal) and Little Miller Act (State), that Surety bonds be provided to protect the public funds designated to the project.
The higher amount is more than double the previous $2 million maximum surety bond guaranteed by the SBA, according to the agency.
 
 
 
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