Character of Surety Bond Certificates

In the wording Surety Bond, there are several characteristics of the wording itself. The wording properties include the following:

1. Indemnity System

Each claim submission must be proven beforehand that there really is a loss / failure and be approved in advance by the Oblige and the Principal.

The losses paid by Surety are equal to the losses actually suffered by the Obligee for negligence committed by the Principal.

2. Pinalty System

Each claim submission can be made without prior proof to the Principal that the principal has failed to implement the provisions stipulated in the contract.

Surety is obliged to pay the Obligee for the failure of the Principal in the amount of the Bond Value.

3. Article 1831 of the Civil Code

The Insurer is not obliged to pay the debtor, other than if the debtor is negligent, while the debtor's property must first be confiscated and sold to pay off his debt.

4. Article 1832 of the Civil Code

The insurer cannot demand that the goods owed be in advance and sold to pay off the debt:

1. If he has given up his privilege to demand that the debtor's property be confiscated to be sold;

2. If he has tied himself together with the main debtor in a responsible manner; in which case the consequences of the engagement are regulated according to the principles established for the liabilities to bear;

3. If the debtor can advance a counter that only concerns himself personally;

4. If the debtor is in bankruptcy;

5. In the case of coverage ordered by the judge.

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