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Who is a surety bond made out to in Arizona?

The Principal on these license bonds is the Contractor. The Surety is the bond company making the guarantee and the Obligee is The State of Arizona. Specifically, the Arizona contractor license bond provides assurance that you will follow all the provisions that have been outlined in the Arizona Revised Statutes.

What happens when a performance bond is called?

When a performance bond is called and the claim has been deemed valid, a surety company will sometimes find a new contractor to complete the project. When this happens, a new contract is drafted with different terms and prices.

How much does a surety bond cost in Arizona?

Surety bonds generally cost 1-15% of the required bond amount. Costs vary docHubly depending on the bond amount you need and your rate (which is the percentage of the full bond amount you must pay). You can get an instant estimate by using our bond premium calculator, or apply online to get a firm bond quote.

What does it mean to service a bond?

Bond Service means, for any period or payable at any time, the principal of, premium, if any, on and interest on the Bonds for that period or payable at the time whether due on an Interest Payment Date, at maturity or upon acceleration or redemption.

What is a service bond?

A registration service bond is bonding for either a business or individual that registers all kinds of vehicles with the state DMV on behalf of their consumers. This surety bond type is important because it essentially guarantees that the consumer will register their vehicle.

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