Overview of the concept of Public Official Bond
The public official bonds refer to the type of surety bond which allows a number of public officials to show that they are worth to be trusted for the services provided by them. It is often referred to as a crucial feature as the public official bonds are required because many people work with money and other sensitive information. The main aspect of the public official bonds is that it protects the citizens who do taxpayers need the service which is official in nature. In case of issues raised on unethical grounds, the citizens can file a claim against that particular bond for protecting themselves and for recovering any lost amount of money.
Who needs to purchase the official bonds?
All the government officials who are mostly required to purchase public official bonds are one that includes:
Agents who are into selling of fishing and hunting licenses
- Court Clerks
- Town Managers
- City Manager’s
- Sheriff’s and deputy sheriff
- Clerks working for town, cities or countries.
- Tax Collectors
- Municipal judges
- Judges if other public sectors
These mentioned positions involve an important position that involves the elements of public trust. It is thereby for that obvious reason that the people who have the desire to work in those very offices are required to purchase those bonds by their employers.
The working mechanism of the official bonds
The public official who is in the needed to purchase the bond is required to have a bond before making their purchasing plans. This is being stated in the required criteria for all the governmental organizations. It is been seen that these involve the inclusion of three parties that include:
- The principal is the person who is taking care of the office as a civil servant person or as a PO.
- The surety generally refers to the insurance companies that deal in the sales of the bond to the principal.
- The obligee is the government agency itself.
On a wider sense, it is seen that it is not always the government agency that is being protected against the non-compliances, rather there is general public too. This is because any misappropriation of the funds or the dereliction in regards to the duty directs the involvement of local citizenship. If there is any kind of breach in the bonds, then the government agency shall have the right to make the claim against the bond. In case, if there is any sort of claim which is upheld which is treated as a breach of the bond’s terms, then the surety company has the full right to pay the amount of claim made by the obligee here being the government agency.
Any sum of amount till the extent of the face value of the bond itself can be claimed by the government agency. The decision, however, is totally dependent upon the validity of the claim that is can be made in the court if it is not being settled properly in between the parties. The amount which the surety company is obliged to pay to the obligee is recovered from the principal who is considered as the civil servant during the violation of the terms mentioned in the bond.
It is therefore advised that being governmental official, one can try to avoid all types of claims made as it would lead to the circumstances of repaying the claim amount to the surety. This will further lead to a difficult situation where it will be difficult for both the parties to trust each other and bring back the lost bond as earlier.
Getting your public official bond online is very easy with Suretegrity. It takes no more than a few minutes to get a bond from Suretegrity. If you have any questions about bonds or the bonding process, call us. Our surety bond experts are happy to help you.