Surety Bond - Mississippi

Surety Bond is a legal document that was released by the Mississippi Public Service Commission - a government authority operating within Mississippi.

FAQ

Q: What is a surety bond?A: A surety bond is a three-party agreement that provides financial protection to the party requiring the bond (obligee) in the event that the bonded party (principal) fails to fulfill their obligations.

Q: Who needs a surety bond in Mississippi?A: Certain businesses and professionals in Mississippi may be required to obtain a surety bond as a condition of their license or permit. Common examples include contractors, auto dealers, and mortgage brokers.

Q: How do I get a surety bond in Mississippi?A: To get a surety bond in Mississippi, you will need to contact a surety bond provider or an insurance agent who specializes in surety bonds. They will guide you through the process of obtaining the bond.

Q: How much does a surety bond cost in Mississippi?A: The cost of a surety bond in Mississippi varies depending on factors such as the bond amount, the type of bond, and the applicant's credit history. Generally, the premium ranges from 1% to 15% of the bond amount.

Q: Can I get a surety bond in Mississippi with bad credit?A: Yes, it is possible to get a surety bond in Mississippi with bad credit. However, applicants with lower credit scores may be required to pay a higher premium or provide additional collateral.

Q: How long does it take to get a surety bond in Mississippi?A: The time it takes to get a surety bond in Mississippi can vary depending on the type of bond and the applicant's specific circumstances. In some cases, bonds can be issued the same day, while others may take longer.

Q: What happens if I don't fulfill my obligations covered by a surety bond?A: If you fail to fulfill your obligations covered by a surety bond, the party who required the bond (obligee) can make a claim against the bond. If the claim is valid, the surety bond provider will compensate the obligee up to the bond amount.

Q: Are surety bonds refundable in Mississippi?A: Surety bonds in Mississippi are generally not refundable. The premium paid for the bond is not refundable, as it is the cost of obtaining the bond. However, if the bond is cancelled or the term ends, any remaining unused premium may be refunded.

Q: How long does a surety bond remain valid in Mississippi?A: The validity period of a surety bond in Mississippi can vary depending on the type of bond and the specific requirements set by the obligee. Some bonds may have a specific expiration date, while others may remain in effect until cancelled.

Q: Can I use an out-of-state surety bond in Mississippi?A: In some cases, an out-of-state surety bond may be accepted in Mississippi. However, it is recommended to check with the obligee or the relevant licensing authority to confirm if an out-of-state bond is acceptable.