What is a deputy bond?

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asked Jun 5 in Law & Legal by 2dompos (1,600 points)
What is a deputy bond?

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answered Jun 8 by Wenja921 (15,040 points)
A deputy bond is a type of security bond.

The deputy bond which is a type of security bond is used to safeguard the assets of the individual who lacks capacity and the bond will guarantee to pay any financial losses suffered by the individual as a result of failures by the Deputy.

Courts require a deputy bond to safeguard assets.

A Court of Protection / deputy bond is required by the Court of Protection before it will appoint an individual as a "deputy" to look after the estate and financial affairs of a person who lacks mental capacity.

The bond provides financial security, up to the stated maximum, in respect of any potential wrongdoing on the part of the appointed deputy, which causes any loss to finances of the person for whom they act as deputy.

A surety bond is a promise to be liable for the debt, default, or failure of another.

It is a three-party contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee).

Usually renewal time is one year after purchasing your bond, but depending on the bond type and bond term, your bond might not renew for 2 or 3 years.

Some bonds do not renew at all.

In some cases, you can get a lower rate for your bond at renewal.

These bond types are also referred to as “commercial bonds" or “business bonds."

Examples of license and permit surety bonds include auto dealer bonds, mortgage broker bonds, and collection agency bonds.

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