Bankruptcy and the Completing Surety

The life of the completing surety is seldom easy. Deciding what to do when called upon to perform can be, even in the best of times, a challenge.

Nevertheless, as difficult as the surety's decision may be, once made, the transition from the investigation and evaluation stage to actual performance by the surety can, in the normal course, proceed relatively smoothly. That is, as long as the contractor bonded by the surety stays out of bankruptcy.

Once the principal passes over to the "dark side," the surety enters an alternative universe where the simple can become complex and the complex nearly unmanageable for those unable or unwilling to aggressively manage their environment. Read more…