<?xml version="1.0" encoding="utf-8" ?><rss version="2.0"><channel><title>Comerford &amp; Dougherty, LLP Blog</title><description>Comerford &amp; Dougherty, LLP Blog</description><link>https://mcmdlaw.com/lawyer/blog/Comerford--Dougherty,-LLP-Blog</link><language>en-us</language><lastBuildDate>Tue, 28 Apr 2026 13:38:45 GMT</lastBuildDate><ttl>10</ttl><item><title><![CDATA[What Are Safe Haven Adoption Laws?]]></title><link>https://mcmdlaw.com/lawyer/2019/12/20/Family-Law/What-Are-Safe-Haven-Adoption-Laws_bl38773.htm</link><description><![CDATA[<p>Women who find themselves with crisis pregnancies often don't know what to do. They may be scared and unsure who to turn to for support. To respond to this, many states have adopted some version of what are known as Safe Haven Adoption Laws. These laws are intended to prevent infant abandonment and child endangerment by allowing mothers to safely relinquish their children without fear of prosecution. While every state's Safe Haven law is different, they each share some common features.</p>
<p>Safe Haven laws generally allow the mother, or her agent, to anonymously give up a child for adoption. Every state has its own list of specific designated locations where children can be taken. Usually these are places such as hospitals or other medical facilities; law enforcement agencies; and fire stations. Other states also allow children to be given up at EMS stations or houses of worship, provided they are staffed. A child that is taken to a designated facility must be left in the physical care and custody of a proper individual. In other words, the child cannot simply be left on the doorstep. It's a good idea to check your state's list of acceptable drop-off facilities before deciding to adopt out your infant.</p>
<p>The child should also not be harmed at the time he or she is given up. If the child is harmed, or there is evidence of neglect or abuse, the mother will likely not be protected by the Safe Haven law. There are also age limits that typically restrict a child to no older than an infant. Parents are usually not required to identify themselves but may be asked to provide medical information about themselves or the child. This is to ensure that any health problems the child may have, such as substance abuse from the mother, are properly addressed.</p>
<p>If the mother follows all requirements under the Safe Haven law, she will likely not be prosecuted for child neglect or abandonment. An attorney can help explain your state's specific legal protections. However, mothers should be aware that giving up their children for this type of adoption will affect their parental rights. When an infant is adopted out under a Safe Haven law, the assumption is that the parent will not return later to retrieve her child. Giving up the child will therefore be considered a termination of the mother's parental rights, and will allow child protective services to begin legal proceedings to place the infant in foster care or adoption.</p>
<h2>The Takeaway</h2>
<p>Parents who are considering adopting out their children under Safe Haven laws should consult a family law attorney first to understand the legal consequences of doing so. They should also make sure they understand all requirements, such as age limitations and proper drop-off locations. Safe Haven laws are a positive option for meeting the growing problem of unwanted children, and ensure that infants will be properly cared for.</p>
<p>&nbsp;</p>]]></description><pubDate>Fri, 20 Dec 2019 09:00:00 GMT</pubDate><category>Blogs</category></item><item><title><![CDATA[What You Should Know Before You SIgn a Co-Working Space Agreement]]></title><link>https://mcmdlaw.com/lawyer/2019/12/13/Real-Estate/What-You-Should-Know-Before-You-SIgn-a-Co-Working-Space-Agreement_bl38772.htm</link><description><![CDATA[<p>Co-working is a popular, flexible work style for sharing a workspace and reducing overhead costs for the users. Users can choose an unassigned seat at a desk or a more formal private office setting. Co-working is on the rise in many industries but special care and concern should be noted for professions such as law that require confidentiality.&nbsp;&nbsp;</p>
<h2>What is a user office agreement?</h2>
<p>There are many companies that offer co-working facilities, especially in urban environments and these providers will often require the user to sign a User Office Agreement.&nbsp; The agreement should clearly state that it is not a landlord/tenant lease. In fact, the landlord is the owner of the building, where as the co-work provider is the tenant and the member is a co-work user.&nbsp;</p>
<p>Co-working agreements resemble a gym membership more then a lease agreement. &nbsp; For example, the user agreement will list certain “house rules,” which give users the day-to-day rules regarding using the space and sharing it with other users.&nbsp; Some of the key provisions to look for before signing a user agreement in addition to the fees to be paid are:</p>
<ul>
<li><strong>Term</strong> -- A user should review the term of the agreement. Is it month-to-month or annual?&nbsp; How does a user cancel? Is there a notice period?&nbsp;&nbsp;</li>
<li><strong>Amenities</strong> -- A user will want to understand what amenities comes with the member’s agreement, such as use of copy machines (or is there a printing fee?), coffee, refreshments, mail delivery services, networking events and file storage/lockers.&nbsp;&nbsp;</li>
<li><strong>Access</strong> -- Can the user access the space 7 days a week/365 days a year (24 hours a day) with a key card or does the particular facility have closed hours.&nbsp;&nbsp;</li>
</ul>
<ul>
<li><strong>Relocation Rights</strong> --&nbsp; If a user selects a formal office with walls and locked door, the user should be aware of any relocation rights the provider may have. Relocation rights basically give the provider the right to move the user to a different office, which may or may not have the same square footage, to accommodate a new user.</li>
<li><strong>Internet</strong> -- The provider may provide free WiFi along with certain disclaimers regarding liability and damage to the user’s business.&nbsp; Some providers will request users waive any rights in the event of a data breach.&nbsp; This provision should be reviewed carefully especially for legal or financial industry users who may work with sensitive information.&nbsp;&nbsp;</li>
<li><strong>Disputes </strong>-- As with many other contracts, the method for resolving disputes -- arbitration, mediation or litigation -- should be specified.</li>
</ul>
<h2>The Bottom Line</h2>
<p>Co-working is becoming a popular alternative to the traditional office lease. Users should review the user agreement to ensure that it provides for a productive and economical work style.</p>]]></description><pubDate>Fri, 13 Dec 2019 09:00:00 GMT</pubDate><category>Blogs</category></item><item><title><![CDATA[What Do I Do If The Other Parent Interferes With My Custody?]]></title><link>https://mcmdlaw.com/lawyer/2019/12/06/Family-Law/What-Do-I-Do-If-The-Other-Parent-Interferes-With-My-Custody_bl38771.htm</link><description><![CDATA[<p>You've made it through your custody battle and finally have an order from the court. This should mean the end of conflict with the other parent, right? For many parents, unfortunately, the answer is no. Interference with the other party's custodial rights frequently occurs and can perpetuate the fight far beyond the courtroom.&nbsp;&nbsp;</p>
<h2>What is custodial interference?</h2>
<p>Custodial interference can occur in a number of different ways. Sometimes it involves improperly affecting the parental relationship, such as denigrating the other parent in the child's presence.&nbsp; Other times it involves direct physical interference with the other party's custodial or visitation rights. This includes, for example, refusing to return the child after a weekend visit. In less extreme situations, the other parent will return the child but is consistently late in doing so. Still other cases concern communications between parents and their children; for example, a father may try to call his son when he is with the mother, but the mother refuses to let the child answer the phone. Anything that takes away from one parent's time or relationship with his or her child may be considered interference.</p>
<p>Parents who believe they did not get a fair deal in court may have the option of requesting a custody modification at a later point. What they cannot do is violate a court order simply because they do not agree with it. This happens frequently, however, and many judges will consider such behavior to be an act of contempt.</p>
<p>If your rights are being violated, you should consult a child custody attorney right away.&nbsp; There may be options for handling the situation before escalating it to court. Your attorney will likely communicate with the opposing party, or his lawyer, and try to resolve the situation privately.&nbsp; Often it's enough to have your lawyer send a strongly worded letter that warns of the potential consequences of continued interference.</p>
<p>When warnings and letters are not enough, the next step is to ask the court to hold the other parent in contempt. Depending on the factual circumstances in your case, you may be able to request either civil or criminal contempt. Civil contempt usually involves fines or the threat of imprisonment in order to compel compliance. On the other hand, criminal contempt is typically used to punish a parent for past interference. In addition to asking the court to award your attorney fees, you may be able to gain additional time to make up for lost custody or visitation.&nbsp; Your family law attorney can explain the difference between civil and criminal contempt, and which one might apply to your situation.</p>
<h2>The Takeaway</h2>
<p>The key to addressing custodial interference is to not wait. The sooner your attorney acts to remedy the situation, the sooner the other parent will know how seriously you take your parental rights. Also, allowing the interference to go unchecked could damage your relationship with your child. Speak to a family law attorney at your earliest convenience to address issues before they become major problems.</p>]]></description><pubDate>Fri, 06 Dec 2019 09:00:00 GMT</pubDate><category>Blogs</category></item><item><title><![CDATA[Why You Should Give Your Spouse Power Of Attorney]]></title><link>https://mcmdlaw.com/lawyer/2019/11/29/Trusts--Estate-Planning/Why-You-Should-Give-Your-Spouse-Power-Of-Attorney_bl38770.htm</link><description><![CDATA[<p>Married couples will often have legal estate documents prepared together.&nbsp; Such documents may include a will, leaving all property to the surviving spouse and/or the couple’s children, and a heath care proxy (sometimes known as a living will) to direct the spouse how to handle medical issues if one spouse becomes incapacitated. &nbsp; However, another estate document may be beneficial for spouses -- a durable power of attorney.&nbsp;&nbsp;</p>
<h2>What is a durable power of attorney?</h2>
<p>A durable power of attorney (POA) is a power of attorney given in the event of disability (whether mental or physical) by one spouse and directs the other spouse how to handle certain business or monetary activities detailed in the agreement.&nbsp; Some instances of disability could include mental illness, physical illness, advanced age, drug use, alcoholism, confinement or disappearance.&nbsp;&nbsp;</p>
<p>While state law may grant spouses certain rights to act for the other spouse, some activities may or may not be covered.&nbsp; A power of attorney also helps spouses who may have separate ownership of property by giving the spouse the right to act on behalf of the incapacitated spouse.&nbsp;</p>
<p>Some examples of business decisions in real estate matters where the well spouse is not a co-owner (perhaps because the real estate was a premarital asset or for other tax reasons) and can act for the incapacitated spouse are:</p>
<ul>
<li>If the incapacitated spouse owns rental property, the other spouse can collect rent</li>
<li>To pay real estate taxes for properties that may not in both spouses ownership</li>
<li>To handle issues related to any mortgages</li>
<li>To take out property insurance</li>
</ul>
<p>Some other general business related functions a durable power of attorney can include:&nbsp;</p>
<ul>
<li>To sue on the collect of a debt</li>
<li>To file for bankruptcy</li>
<li>To write checks and do banking transactions</li>
<li>To sell stock or other securities</li>
<li>To file tax returns</li>
<li>To manage retirement accounts</li>
<li>To borrow money</li>
<li>To make loans</li>
<li>To make charitable donations</li>
<li>To hire attorneys, accountants or other professionals</li>
</ul>
<p>In the event state law did not allow a spouse to do any of the functions described above for its incapacitated spouse, a durable power of attorney signed by the incapacitated spouse before the disability (and notarized for validity) can come in handy in a family emergency.&nbsp; </p>]]></description><pubDate>Fri, 29 Nov 2019 09:00:00 GMT</pubDate><category>Blogs</category></item><item><title><![CDATA[Why Does a Tenant Need to List "Additional Insureds" on its Insurance Policy for Leased Property?]]></title><link>https://mcmdlaw.com/lawyer/2019/11/08/Real-Estate/Why-Does-a-Tenant-Need-to-List-Additional-Insureds-on-its-Insurance-Policy-for-Leased-Property_bl38769.htm</link><description><![CDATA[<p>When a landlord and tenant enter into a commercial lease for a retail store or office space, the lease will likely contain a long insurance provision as well as an indemnity provision.&nbsp; An indemnity is a promise whereby one party promises to indemnify (or compensate) the other against some anticipated loss.&nbsp;&nbsp;</p>
<p>The commercial lease insurance provision will state the types of insurance the landlord must carry on the building, such as casualty insurance for damage caused by fire, hazards or terrorism and liability insurance to cover damage to property, bodily injury or death. By contrast, the tenant will be required to obtain and pay for insurance covering casualty or liability occurring within the leased premises and coverage for the certain events that occur in common areas of the leased building, especially if due to the tenant’s negligence.&nbsp;&nbsp;</p>
<p>The tenant is the named insured – that is the party paying for the insurance whose credit was reviewed when issuing the policy and determining the premiums.&nbsp; The landlord will request certain types of insurance in certain amounts be on a “per occurrence” basis with permitted deductible amounts. Landlords will sometimes request a tenant to carry business interruption insurance.&nbsp; The rationale behind this request is if an event occurs that interrupts tenant’s business, the tenant ymay lose revenue and then not have sufficient funds to pay the rent.</p>
<h2>Why is the tenant being asked to add others to its insurance policy for casualty and liability ?</h2>
<p>On most casualty policies (with the exception of business insurance), the landlord will ask to be named as an “additional insured” on the tenant’s casualty policy, together with other interested parties such as the landlord’s agents (e.g. the property management company, or the mortgage lender).</p>
<p>An “additional insured” is a person or entity other than the named insured who is protected under the terms of the insurance policy sometimes referred to as the “loss payee. “ Typically an endorsement to the policy is added to cover additional insureds.&nbsp; Landlords feel this protection is like <em>“a belt and suspenders.”</em></p>
<p>The landlord will sometimes request a full copy of the tenant’s insurance coverage, with an endorsement showing the additional insureds listed, but more commonly will request a “Certificate of Insurance” which is a one-page sheet showing the types of coverage, amounts and deductibles and the lists the parties covered as additional insureds.&nbsp;</p>
<h2>The Bottom Line</h2>
<p>Both the tenant and landlord should have their attorney carefully review the insurance provisions of the lease and indemnity clause to determine that there is adequate protection for each party and reasonable coverage given the specific risks. </p>]]></description><pubDate>Fri, 08 Nov 2019 09:00:00 GMT</pubDate><category>Blogs</category></item><item><title><![CDATA[What is the Home Study Requirement in an Adoption Proceeding?]]></title><link>https://mcmdlaw.com/lawyer/2019/11/01/CorporateBusiness-Organization/What-is-the-Home-Study-Requirement-in-an-Adoption-Proceeding_bl38768.htm</link><description><![CDATA[<p>Most adoptions require a home study, the goal of which is to make sure the prospective adoptive parents are ready to take on the responsibilities of caring for a child. The best way to prepare for a home study is to seek the advice and guidance of a family law attorney. In the meantime, this article is a brief discussion of how a home study is conducted.</p>
<h2>Home Study 101</h2>
<p>All types of adoptions require a home study, however, one is not required for stepparent adoption in some jurisdictions. The study is similar to a background check for parents who want to adopt.&nbsp; Usually a social worker will interview the prospective parents to ensure they are emotionally and financially prepared for the adoption process.</p>
<p>The social worker will also review a variety of records, including:</p>
<ul>
<li>Birth and marriage certificates</li>
<li>Life and health insurance information</li>
<li>Financial records (e.g. tax returns)</li>
<li>Legal records (e.g. divorce and child custody decrees)</li>
<li>Letters of recommendation for the adoption</li>
</ul>
<p>Many newly adopted children come from foreign countries, which may present challenges for parents of a different culture. In other cases, a child may come from an abusive or neglectful home life. These circumstances can be difficult to manage, and the social worker needs to ensure the new parents are able to do so.</p>
<p>You will likely be asked about your background and reasons for wanting to adopt. If you already have a child or children, the social worker will ask how you plan on integrating the adopted child into your family. Other questions may concern how family disputes are resolved or what sort of domestic routines you follow. Anything that is relevant to the well-being of the adoptive child could be raised during the home study.</p>
<p>Most studies require more than one visit. Once it is completed, the social worker will file a written report of his or her findings with the court. If you disagree with the findings, you can contest the home study, but you must have evidence to support your claims.&nbsp;</p>
<p>The home study may only be valid for a certain amount of time, after which you will need to complete another one. You may also need to update the home study if you move or experience another major life change. Finally, for most adoptions you will need to complete a post-placement assessment, which is designed to make sure the child is adjusting well after the adoption is complete.</p>
<h2>The Takeaway</h2>
<p>Adoption is a rewarding way to give a child a new start.&nbsp; Work with your attorney to prepare for the home study as well for guidance on other steps in the adoption process.</p>]]></description><pubDate>Fri, 01 Nov 2019 09:00:00 GMT</pubDate><category>Blogs</category></item><item><title><![CDATA[Why Landlords Want Tenants to Obtain Renter's Insurance]]></title><link>https://mcmdlaw.com/lawyer/2019/10/25/Real-Estate/Why-Landlords-Want-Tenants-to-Obtain-Renter's-Insurance_bl38699.htm</link><description><![CDATA[<p>Residential landlords will often include a provision in the lease requiring the tenant to carry renter’s insurance. Landlords do not want be sued by tenants for damage to their possessions and want tenants to look to their own coverage. Tenants often balk at an additional cost and mistakenly assume that they are covered under the landlord’s policy. This is not the case.&nbsp;</p>
<p>In fact, the landlord’s insurance will cover repairs to or replacement of the structure from things from fire, water or storm damage. Damage to or theft of the tenant’s possessions are not covered. Tenants will often believe their possessions are not worth much, when you make an inventory (TVs, computers, clothing, books, mattress, furniture) it adds up!&nbsp;&nbsp;</p>
<p>A common lease provision reads as follows:</p>
<p><em>“The Tenant shall be responsible for obtaining at Tenant’s own cost and</em></p>
<p><em>expense, a tenant’s insurance policy for the Tenant’s furniture, furnishings,</em></p>
<p><em>clothing and other personal property.&nbsp; The Tenant’s personal property shall not</em></p>
<p><em>be the responsibility of the Landlord, and will not be insured by the Landlord.&nbsp;</em></p>
<p><em>The Tenant’s insurance policy must also include liability coverage.&nbsp; Upon</em></p>
<p><em>request, the Tenant shall periodically furnish Landlord with evidence of</em></p>
<p><em>Tenant’s insurance policy.”&nbsp;&nbsp;</em></p>
<p>Some savvy Landlords will go further and add:&nbsp;</p>
<p><em>“Tenant shall provide a copy of renter’s insurance at the time of lease signing</em></p>
<p><em>and at each renewal of the lease.&nbsp; Tenant shall provide written notice of any</em></p>
<p><em>interruption of Tenant’s insurance during the Lease term.”&nbsp;&nbsp;</em></p>
<p>This additional provision prevents a tenant from letting the renter’s insurance lapse for non-payment or alerts the landlord if the insurance carrier dropped the tenant.&nbsp; A failure to provide the insurance could be a breach under the lease.&nbsp;&nbsp;</p>
<p>Tenants should consider who is listed on the insurance policy,&nbsp; in particularl&nbsp; roommates and couples, to be sure all occupants’ possessions are covered. Some renter’s policies can extend to possessions damaged or stolen while traveling.&nbsp; A Renter’s policy can also cover a hotel stay or other interim housing if a tenant must leave its rental because of damage.&nbsp;&nbsp;</p>
<p>In conclusion, renter’s insurance is not as costly as one may think and it is a good investment and protection tool for both the landlord and the tenant.</p>]]></description><pubDate>Fri, 25 Oct 2019 09:00:00 GMT</pubDate><category>Blogs</category></item><item><title><![CDATA[Why You Need An Attorney For Your Family Law Case]]></title><link>https://mcmdlaw.com/lawyer/2019/10/18/Family-Law/Why-You-Need-An-Attorney-For-Your-Family-Law-Case_bl38698.htm</link><description><![CDATA[<p>It can be tempting to handle a family law case on your own. After all, you're familiar with the facts and have a personal interest in the outcome.&nbsp; Aside from the stress, time, and emotions involved, there are some concrete reasons to hire a lawyer rather than try to represent yourself.</p>
<p>First and foremost, you need someone who knows the domestic laws relevant to your matter.&nbsp; When most people think of this critical element, they think of statutes. But familiarity with the law extends to court decisions that could have a bearing on your case. You also need someone who understands rules of civil procedure and local rules of court. There are also rules of evidence you need to follow.</p>
<p>Understanding the discovery process is important as well. Discovery is the collective name of methods used by either side to gain relevant knowledge about the case. Included within the umbrella of discovery are things like subpoenas, requests for production, and depositions.&nbsp; A lawyer will be familiar with these and other tools, along with procedural objections that can be raised.</p>
<p>The court system relies upon deadlines to keep cases moving. A skilled attorney will know deadlines as they pertain to pleadings, discovery, and answering subpoenas. Keeping track of deadlines is a significant part of the process, and missing one could jeopardize your case.</p>
<p>In any family law case, there are potentially endless parties beyond the plaintiff and defendant.&nbsp; There are witnesses for either side. There may be school professionals or therapists in custody cases. Some matters require expert witnesses, especially when complex financial issues are at stake. Still others involve custodians of records such as hospitals and banks. An experienced family law attorney will know who may be called upon or contacted for information concerning your case.</p>
<p>Another key task for your lawyer is to manage communications. This includes correspondence with the opposing counsel or opposing party. It also involves communications with the judge, clerks, and other court personnel. Sometimes the role of an attorney is to know what to say – or what not to say. A major responsibility of your lawyer is to protect confidential knowledge and to avoid disclosing potentially damaging facts unless necessary. This plays into settlement negotiations as well; there's a time and place to reveal sensitive information.</p>
<p>Finally, having a skilled attorney will help maintain objectivity.&nbsp; When the subject matter is one's spouse, children, or marital finances, it's easy to see the facts in the light most favorable to you.&nbsp; But not maintaining objective judgment can prove damaging to your case.&nbsp; Having a full view of the facts, including those that don't help your case, is vital.&nbsp;&nbsp;</p>
<p>Domestic litigation matters can be difficult endeavors.&nbsp; The last thing you need is to be taken advantage of by a skillful opposing counsel. If a family law case is in your future, invest the time and money in selecting a good, experienced attorney.</p>]]></description><pubDate>Fri, 18 Oct 2019 09:00:00 GMT</pubDate><category>Blogs</category></item><item><title><![CDATA[What Is A Joint Venture Agreement ("JV")?]]></title><link>https://mcmdlaw.com/lawyer/2019/10/07/CorporateBusiness-Organization/What-Is-A-Joint-Venture-Agreement-(JV)_bl38697.htm</link><description><![CDATA[<p>There are several types of business organizations that are recognized by the law as a legal entity. This includes an individual (a natural person or individual proprietorship), corporation, partnership, limited liability partnership, joint venture or any other form of business organization.&nbsp;</p>
<p>A joint venture is an agreement between two or more entities to combine their property and/or efforts for an undertaking and to share the profits and/or losses equally (unless otherwise specified). Each party to a joint venture agreement (a “joint venturer”) contributes to and has control over the business venture.&nbsp; There must be intent by the parties to associate as joint venturers either by their actions or by a written joint venture agreement.&nbsp;&nbsp;</p>
<p>A joint venture’s closest entity “cousin” would be a partnership.&nbsp; The difference is that a joint venture is usually for a single limited purpose whereas a partnership is typically formed for an ongoing enterprise.&nbsp; A joint venture has a duration that is specified in the agreement, or if not stated, then until the undertaking is completed or no longer possible.&nbsp; A real estate example would be a joint venture to build a development.&nbsp; The joint venture would end when the agreement states it ends, when the development is built or when a municipality declared it not permissible to build.</p>
<p>A joint venture agreement should clearly define the scope of the joint venture and what activities are permitted and prohibited.&nbsp; In addition, a joint venture will have tax implications that should be considered and addressed upfront.&nbsp; The parties to a joint venture may also agree to confidentiality and non-competition agreements as well.&nbsp;&nbsp;</p>
<p>An important concern in forming a joint venture is potential liability to third parties.&nbsp; A lawsuit brought by a third party for damages or personal injury caused by one joint venturer can be imputed on the other participants. For example, joint venturer A could be liable for the negligence of joint venturer B in the undertaking.&nbsp;&nbsp;</p>
<p>In the context of a real estate transaction, a typical provision found in a commercial lease to protect the landlord and tenant from the possible imputed liability of a joint veture is:</p>
<p><strong><em>“No Joint Venture</em></strong><em>.&nbsp; This Lease shall not be construed to create a partnership, joint venture or similar relationship or arrangement between Landlord and Tenant hereunder.”</em></p>
<h2>The Bottom Line</h2>
<p>At the end of the day, a joint venture can be quite an “adventure” and parties to a joint venture agreement should consider the benefits and risks before collaborating resources with the goal of mutual gain.&nbsp;</p>]]></description><pubDate>Mon, 07 Oct 2019 12:20:00 GMT</pubDate><category>Blogs</category></item><item><title><![CDATA[What is a Surety Bond?]]></title><link>https://mcmdlaw.com/lawyer/2019/09/23/CorporateBusiness-Organization/What-is-a-Surety-Bond_bl38562.htm</link><description><![CDATA[<img id="InsertedPictureDiv" style="float: right; text-align: right; display: block;" src="/global_pictures/Defaults/NewsletterTemplates/what%20is%20a%20surety%20bond%2025464.jpg" vspace="12" hspace="12" align="right">

<p>A "surety bond" is a legal tool used to guarantee that a promise will be kept.&nbsp; It ensures that contractual requirements will be met and work will be done according to specifications.&nbsp; If they are not, the bond will cover some or all of the damages that result.</p>
<p>&nbsp;</p>
<p>The "surety bond" commits three parties to a binding contract.&nbsp;</p>
<p>&nbsp;</p>
<p>First, there is the "principal," the contractor, business or individual purchasing the "surety bond" as a way to assure others that work will be done as agreed.</p>
<p>&nbsp;</p>
<p>Second, there is the "obligee," the party seeking assurance that the "principal" will fully complete the task.&nbsp; Obligees are sometimes government agencies putting out bids, or any company or institution trying to be certain that it does not suffer financial loss at the hands of a contractor.</p>
<p>&nbsp;</p>
<p>Third, there is the "surety," often an insurance company, which backs the bond and makes payment to the obligee in the event that the principal fails to meet its responsibilities.</p>
<p>&nbsp;</p>
<p><strong>How Does a Surety Bond Work?</strong></p>
<p>&nbsp;</p>
<p>A contractor &nbsp;(the principal) usually pays an annual premium to an insurance company (the surety) in exchange for the insurer's commitment to uphold the contractor's promise to the organization or company that hired the contractor (the obligee).&nbsp; If the contractor misses a deadline or breaches some other term of a contract, the organization it contracted with can ask the insurer to cover any losses that have ensued, up to the amount of the surety bond.&nbsp; If the company has a valid claim, the insurance company will make payment. &nbsp;After making good on the bond, whether the maximum amount or a lesser sum, the insurer usually tries to recover the funds from the contractor.</p>
<p>&nbsp;</p>
<p><strong>When Is a Surety Bond Required?</strong></p>
<p>&nbsp;</p>
<p>There are a number of circumstances in which an individual or business may need to buy a surety bond.&nbsp;</p>
<p>&nbsp;</p>
<ul>
<li>To receive contracts from the government or from some general contractors, a construction firm or other bidder may need to have a surety bond.&nbsp; Varieties of surety bond can include: &nbsp;"bid bonds" guaranteeing that a contractor will accept a contract if its bid is successful; "performance bonds" guaranteeing that a contractor will complete a contract according to its terms; "payment bonds," guaranteeing that a contractor will pay subcontractors and suppliers, particularly on federal projects; and "maintenance bonds," guaranteeing that a contractor will provide upkeep and repairs for a certain amount time.</li>
</ul>
<p>&nbsp;</p>
<ul>
<li>A surety bond such as a "license bond" or "permit bond" is sometimes a requirement for receiving certain business licenses or permits.</li>
</ul>
<p>&nbsp;</p>
<ul>
<li>A business may need a "business service bond" or "fidelity bond" to protect itself or its clients against theft or other crimes by its employees</li>
</ul>
<p>&nbsp;</p>
<ul>
<li>"Judicial bonds" may be needed by parties in civil or criminal litigation to guarantee court remedies or penalties.&nbsp; These can include "bail bonds."</li>
</ul>
<p>&nbsp;</p>
<ul>
<li>"Fiduciary bonds" are sometimes needed by individuals working with probate courts.&nbsp; These ensure that these individuals will care for the assets of others professionally and honestly.</li>
</ul>
<p>&nbsp;</p>
<p>If you need advice relating to surety bonds, a business law attorney can help.</p>]]></description><pubDate>Mon, 23 Sep 2019 11:15:00 GMT</pubDate><category>Blogs</category></item></channel></rss>