If you’re looking for information about North Carolina surety bonds or simply looking to get a quote for surety bonds in North Carolina, you’ve come to the right place.
NC Surety Bonds are contracts guaranteeing that specific obligations will be fulfilled. That obligation may involve meeting certain contractual commitments, paying a debt or performing certain duties. A North Carolina Surety Bond has three (3) parties:
Under the terms of a North Carolina Surety Bond, one party (Guarantor or Surety) becomes answerable to a third party (Obligee) for the acts or non-performance of a second party (Principal).
The 1974 Employee Retirement Income Security Act (ERISA) was enacted by Congress to regulate employee benefit plans. This Act mandated that every fiduciary responsible for managing a benefit plan, and/or every individual who handles the assets of such a plan, be covered by a fidelity bond to help protect the plan’s assets from fraudulent activity.
Generally speaking (please check with your attorney for exact requirements), the face amount of the bond must not be less than 10% of the funds handled, but not less than $1,000 nor more than $500,000.