FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
Learn more about receiver bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
A receiver bond (also known as a receivership bond) is a type of court fiduciary bond. These are often required of a person appointed by a court as receiver in a lawsuit that is pending a final decision. A receiver is responsible for securing the assets (including funds, real property, or control) of a business that is the defendant in a lawsuit that could result in the permanent loss of those assets. Of course, if the defendant prevails in court, the assets in receivership will be returned.
The role of receiver involves a fiduciary responsibility that the receiver cannot undertake until a receiver bond is in place. The bond guarantees that the receiver will faithfully carry out the responsibilities and duties of receivership. Typical responsibilities include managing disputed real property, collecting rents, maintaining property, and operating a business until an ownership dispute is resolved.
Any individual appointed as receiver will be acting on behalf of the court. Whether or not a receiver bond is required in any given case is up to the court and the laws of the state. The bond must remain in force until the receivership is terminated by the court.
The bond serves as a guarantee that a receiver will perform their appointed duties in accordance with state laws and the rules of the court. A party who believes that the receiver has exceeded the authority of the role or has acted in an unethical or unlawful manner not favorable to the court can file a claim against the bond.
If the surety determines that the receiver’s actions did in fact violate the terms and conditions of the bond, the surety will pay the claim. Only actions that are spelled out in the bond terms and conditions, such as embezzlement or misuse of funds, are valid grounds for a claim. The receiver (the principal in the bond agreement) is legally obligated to reimburse the surety for any claims paid.
The court establishes the required bond amount based on the value of the disputed assets. The receiver will pay a small percentage of the required bond amount as an annual premium. That percentage, the premium rate, is determined by the surety based on the applicant’s qualifications and financial standing.
If you have been appointed as receiver in a case involving disputed property, apply for a receiver bond online today.
