Surety is a special line of insurance that is used by the court system (and mediation) to guarantee the performance of an obligation. Surety bonds are used to provide monetary compensation in case the Principal fails to perform on the promised obligation. Unlike traditional insurance coverage the risk remains with the principle but the protection is for the obligee. There are a vast array of surety bonds required by different facets of the court system as well as municipalities and the commerce department.
Finding the specific contract bond form to fit your needs is vital to ensuring you're meeting the proper requirements to the court or municipal entity. It is also very important for you to understand what the bond is guaranteeing and how it can impact you or your business should the bond be surcharged.
At PJT we have over 50 years worth of experience in the surety industry ready and available to help your unique situation and needs. Our staff have been called upon to testify as expert witnesses regarding civil court surety claims in both the US District court and state court. Members of various state agencies regularly seek out PJT on questions of civil surety bonding.
This is not the full list of surety bonds PJT offers. If you don’t see the specific bond you’re looking for, please contact us.
- Court Bonds
- Surety Bond
Surety bonds are three party agreements in which one party (the Surety) guarantees or promises a secondary party (the Obligee) that a third party (the Principle) will successfully perform said duty/obligation. When a court requires a bond, it is expecting that the Principal will undertake the obligation of the bond, the Obligee will receive the benefit of the bond and the Surety will guarantee the obligation is performed. There are numerous types of surety bonds from license bond for a business to appeals and injunctions required by the court. Contact us for help, there are no stupid questions in this process.
- Injunction bond
An injunction is an order from the court that requires a party or individual to refrain from doing a particular act or to do a particular act. The bond guarantees that the other party will be paid damages as a result of the injunction being improper.
- Temporary Restraining Order Bond
A Temporary Restraining Order is a shorter term pre injunction.
This bond is used when a plaintiff contends that property in the possession of the defendant is owned by the plaintiff. The bond guarantees that the plaintiff will return the property to the defendant if the court determines the defendant is entitled to the property.
- Fiduciary Bonds
Fiduciaries are typically court appointed individuals or businesses that are expected to faithfully perform the duties and comply with the order(s) of the court. Typical fiduciary bonds include Guardians, Conservators, Personal Representatives, Trustees as well as Receivers.
- Bonds Before Judgment
Rule 55.01 bond that protects a defendant from the improper actions of a plaintiff seeking to recover a money judgment. The plaintiff must post the bond as ordered by the court.
- License and Permit Bonds
A license bond is required by a state or federal municipal agency as a requirement to receive a license or permit to do certain business activities. The bond amounts vary depending on the license (as does the bond language).
- Sheriff's Indemnity
If a sheriff is charged with serving a writ to seize property or take possession of property the sheriff is entitled to request an Indemnity bond from the plaintiff which would indemnify the sheriff from claims or damages from the defendant claiming the sheriff seized the wrong property or should the writ for collection be proven invalid.
- Mechanic's Lien Bond
To release a lien filed against real property by a contractor alleging nonpayment for products or services. The bond guarantees the lien will be paid if not successful contested.
A receivership bond guarantees faithful performance of the receiver for duties and obligations outlined by court order. Normally involves the running of a business and or real estate.
- Fiduciary Bonds (Probate, Rep Payee, Trustee, Conservator)
- Personal Representative
A Personal Rep (or PR) is charged with the compiling the assets of an estate, paying any creditors and then distributing said assets to the estate heirs as determined by will or stature. A PR may be appointed formally by the court in a supervised or unsupervised administration as well as informally by a Registrar.
- Representative Payee
A person who manages benefits on behalf of a beneficiary (most commonly categorized as being incapable of managing their finances, legally incompetent or a minor child under 18). The most common Representative Payees are through the Social Security Administration or the Veterans Administration.
A court appointed fiduciary who has the legal right and duty to manage another person's assets due to inability to legally act on his/her own behalf (typically do to incapacity of some form). A conservator's main function is to maintain a dependent person's estate. There are various duties and powers the court can grant a conservator so make sure you know which powers you have and which you do not. A full description of the powers and other expections the court has of a Conservator can be found at MS 524.5-418
A guardian is a person who takes on the responsibility and obligation to care for another person. Appointed by the court, a guardian has the legal right and duty to care for a ward or dependent person. A full outline of a guardian's powers and duties can be found at MS 524.5-313
- Power of Attorney (POA)
A POA is a document that is created to give another person the power to act on your behalf. The individual creating the POA is the "principal" while the person with the authority is called the "attorney-in-fact" (they must be 18 years or older). The principal can revoke the POA at any time.
A principle that holds legal title to property in order to administer it for a beneficiary. Trusts can be supervised by the court or unsupervised depending on how the trust is drafted and set up. Similar to a POA an unsupervised trust can be a dangerous tool to utilize in protecting assets as there is little supervision over the Trustee.
- Supplemental Needs Trust
Designed to protect the assets of an individual and still allow said person to qualify for additional governmental health care benefits.
- Special Needs Trust
A Supplemental Needs Trust ensures a beneficiary who is disable or mentally ill can enjoy the use of property or other assets while maintaining their governmental health care benefits.
- Cost/Appeal bond
When a party appeals a ruling of the court, this bond guarantee the costs incurred by the adverse party should they prevail on the appeal.
An appeal to the next highest court from a lower court or administrative hearing reviewing its decision.
A supersedeas appeal stays the enforcement of the underlying judgment during the pendency of an appeal. It guarantees the adverse party that their judgment will be paid should all or part of the judgment be confirmed on appeal.
Apply for your Minnesota surety bond by completing our online application.
If you prefer, you may download an application to complete and fax or email to our bond agency for processing.