Secrets of Bonding

We have written about indemnity agreements before (enjoy Secrets #19 and 79) but recent activity with our clients has inspired yet more on this vital subject. As a follower of the "Secrets" series, you may already know what a General Indemnity Agreement (GIA) is, and that is a requirement all bond applicants face. Basically, it contains a payback obligation to the surety similar to a promissory note. As a bond applicant, why should you be cautious when signing such documents? The first reason is that it may include companies or individual people who are inappropriate. Some examples: An affiliated company in which the bond applicant has a minority interest. Another would be an individual person with little or no ownership in the company and is not married to an officer, key person or major company owner. Ls0gm6NU
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