In Mexico, there are different types of bond, whose characteristics differ depending on the type of contract sought to endorse. A bond is an instrument of guarantee that guarantees the fulfillment of an obligation or contract.
In order for bondholders to issue a bond policy, there must be a contract in place, which can cover purchase orders, orders, and other obligations. Regardless of the type of contract, the bonds will always aim to be a support for individuals or companies and respond in case of default.
How a Bail Bond Would Work?
By means of a bond, the beneficiary of the policy is provided with the certainty that in the event that the bond fails to comply with the established, the damage caused will be compensated.
Administrative Bonds: They are responsible for ensuring compliance with the obligations arising from a contract, purchase order, order or lease. Within this type of bonds, there are also those of advance, compliance, good quality, and hidden vices.
Loyalty Bonds: Its objective is to protect the company’s assets, guaranteeing the repair of the damage that an employee or supplier may cause when committing a patrimonial crime such as theft, fraud or abuse of trust, against the assets of the same.
Judicial Bonds: Its function is to ensure compliance with the obligations resulting from a judicial process, which can be criminal or non-criminal.
Credit Guarantees: They are responsible for guaranteeing the payment of credit obligations authorized by law.
The different types of bail, play a very important role in the day to day of the companies, helping to ensure that the obligations and processes are carried out in a timely manner so that the contracts that are involved are met.
In order to process them, it is very important to gather the necessary documentation, as well as the guarantees requested by the bondholders.
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