Format for Security Bond by a Surety

What is Security Bond by a Surety?

A surety bond is a contract between three parties—the principal (one executing

the bond), the surety (guarantor) and the obligee (the entity requiring the bond)—
in which the surety financially guarantees to an obligee that the principal will act
in accordance with the terms established by the bond.

Why is Security Bond by a Surety required?

When you are required to get a surety bond, you are expected to abide by the
terms of the bond. If you fail to do so, a bond claim is made. This can be a costly
endeavor for a few reasons. When it comes to surety bond claims, you are
expected to pay every expense of the claim, including legal costs.

The surety providing your bond is saying you are in a strong enough financial
position to cover any claims that may arise. If the surety is wrong and payment
cannot be collected from you directly or through the courts, they are ultimately
responsible for the costs. For this reason, bonds are underwritten based on the
potential of a principal causing a claim, as well as the ability of the principal to
repay a claim in the future.

What should a Security Bond by a Surety cover?

A surety bond must contain the following:
1. Name of the principal, surety and the obligee.
2. Address of principal, surety and the obligee.
3. The amount being lent/borrowed.
4. The purpose for which the amount is being borrowed.
5. The time period for which the amount is being lent.
6. The interest to be levied on the amount.
7. Condition of payment or the required obligation to be fulfilled by surety in
case the obligee fails to do so.
Download Word Doc

DRAFT OF SECURITY BOND BY A SURETY

By this Bond Mr………….. residing at …………………………….... hereinafter

referred to as the 'Surety' acknowledges himself to be bound to Mr. B hereinafter
referred to as the 'Creditor' in the sum of Rs………………….. lent and advanced
by the Creditor to Mr. C residing at ... the Debtor, with interest thereon at the rate
of Rs... percent per annum from the date hereof till payment.

Whereas the Creditor has lent and advanced to Mr. C the Debtor above named a
sum of Rs... repayable by him with interest thereon at the rate of Rs... per cent
per annum.

And Whereas the said amount has been advanced against the surety giving a
guarantee for repayment of the said amount by the said Debtor and against the
said guarantee being secured by a mortgage of the property of the Surety
described in the Schedule hereunder written and which the Surety has at the
request of the Debtor agreed to do.

Now This Deed Witnesseth that in pursuance of there request made by the
Debtor to the Surety the Surety doth hereby guarantor and covenants with the
Creditor that in default of payment of the amount of Rs... with interest as
aforesaid by the Debtor to the Creditor within the lime stipulated by him in the
separate writing executed by the Debtor-for evidencing the said Debt, in favour of
the Creditor, the surety shall pay to the Creditor the said amount of Rs... or any
part thereof remaining unpaid with Interest at the rate of ... aforesaid till payment
on demand made to the Creditor in writing

And This Deed Further Witnesseth that pursuant to the said agreement, the
Surety as a security for payment of the said amount by the Surety, doth hereby
grant and transfer by way of mortgage the said property described in the
Schedule hereunder written TO HAVE and TO HOLD the same unto the Creditor
subject to the covenant for redemption hereinafter contained And it is agreed and
declared that in the event of the Surety being required to pay the said amount on
default by the Debtor and on the surety so paying the said amount or any part
thereof due and payable to the Creditor the Creditor shall release and recovery
the said property to the Surety but at the costs of the Surety And it is further
agreed that in the event of the Surety becoming liable and failing to pay the said
amount or any part thereof as aforesaid, the Creditor will be entitled to sell the
said property through a Court of law and to appropriate or apply the net sale
proceeds thereof towards payment of the amount to the Creditor by the Surety
and/ or the Debtor including costs of the suit and sale proceedings and to pay the
balance if any to the Surety. And the Surety covenants with the Creditor that he
has full right to mortgage the said property as aforesaid. And the condition of the
Bond is that it will be void if the Debtor pays the said amount to the Creditor with
interest as aforesaid, within the time stipulated otherwise, and failing which this
Bond will remain in full force and effect.

The Schedule Above Referred To

Signed and delivered by the

withinnamed Surety Mr. A

WITNESSES;

2.
Bond and Bail Bond under Criminal Procedure Code, 1973 after Arrest Under a Warrant

Bail bond is a document wherein the accused family or friends promises to forfeit the sum of money
determined by the court to be commensurate with the gravity of the alleged offense if the accusedfails to
return for the trial date.

The object of bail bond is that it created as a security when the accused is granted bail the for
appearance

Draft of Bond and Bail Bond under Criminal Procedure Code, 1973 after Arrest Under a Warrant

I (name) ___________ of ___________ being brought before the District Magistrate of ______________
(or as the case may be) under a warrant issued to compel my appearance to answer to the charge of
____________ do hereby bind myself to attend in the court of ____________ on the _____ day of
________,20__ to answer to the said charge, and to continue to attend until otherwise directed by the
court, and in case of my making default herein, 1 bind myself to forfeit to Government, the sum of Rs.
_________.

Dated this ________ day of __________ 20__

(Signature)

I, do hereby declare myself surety for the above named ______________of ____________ that he shall
attend before ________________ in the court of _______________ on the ____ day of __________,
20__, to answer to the charge on which he has been arrested, and shall continue to attend until otherwise
directed by the court and in case of his making default therein, I bind myself to forfeit, to Government the
sum of Rs. ___________.

Dated this ______ day of ____________, 20__

Signature