Surety bonds are required in many fields. First, insurance companies issue performance bonds to make sure a project is completed. Contractors often need a bond to guarantee the successful completion of building projects. For instance, the contractor is putting up a building that must meet certain specs. If the building is not completed according to the guidelines, the bond compensates the client. Further, many government projects require contractors to have payment bonds. This bond kicks in if subcontractors and suppliers are not paid.
State and federal laws require vendors to obtain bonds before they receive licenses and permits. A good example of this is Prescription Drug Wholesaler Bonds in Arizona. Prescription drug wholesalers are required to post a $100,000 bond. Indeed, the purpose of the bond is to make sure the wholesaler follows state laws. It is up to the surety to decide who gets a bond and who does not. Candidates for wholesaler bonds must have excellent credit and no criminal history involving drugs.
Prescription Drug Wholesaler Bonds in Arizona are aimed at curbing certain activities. The wholesaler must not distribute any adulterated or counterfeit drugs. Further, the wholesaler may only deliver drugs to a verified representative of the pharmacy. Likewise, the wholesaler must give the pharmacy agent a receipt upon delivery. The receipt spells out what drugs were delivered and in what quantity. The pharmacist must report any discrepancies. Other vendors that need bonds include auto dealers, mortgage brokers, and liquor stores.
Interestingly, the court system requires a variety of surety bonds. First, certain defendants must have an appeals bond. This bond comes into play when an individual has been convicted. However, the judge allows them to stay out of jail pending an appeal. Executor and administrator bonds are very important in estate distribution. The parties are supposed to make sure an estate is handled according to the deceased’s wishes. Nonetheless, the bond guarantees their performance. In addition, fiduciary bonds serve as protection for those who cannot handle their assets. The fiduciary is appointed by the court to handle the monetary affairs of a ward. The ward may be incapacitated or underage. For more information on surety bonds, visit website.
