Bonds

What is it?

The Bond is a tripartite contract in which the following individuals participate: the creditor, the debtor and the surety. In some cases a fourth entity called Solidarity Obligor takes part which is like a coinsured. The creditor has the right to demand certain obligations from another, which is called the debtor. The bond is an accessory contract, which is linked to a principal; the bond guarantees the fulfillment of obligations by the debtor. To ensure the payment of a surety, the debtor grants property or money. If the debtor does not have any of these, it is when the Solidarity Obligor takes part as a guarantee by the debtor.

➢ Construction:

These bonds are issued both for Government Entities and for contracts between individuals, mainly in the construction industry.

Advance Deposit	Guarantees the correct application or investment.
Performance Bond	Guarantees that the goods are delivered in a timely manner or the fulfillment stipulated in the contract.
Contest or Tender	Guarantees the seriousness of the offer, keeping the price and conditions in case of obtaining the contract.
Good Quality	Also known as hidden defects, it guarantees for two years the correction of defects in finished works and the proper functioning of machinery, equipment or facilities.

➢ Fiscal:

Fiscal Nonconformity	Guarantees the payment of debts of fines, taxes, rights or quota of employers.
Deposit of Payment Agreement	Guarantees the timely payment of a credit and in installments.

➢ Leasing:

Nowadays this type of surety has become very popular and in some cases mandatory. This guarantees the payment of rents of the property by use of the lessee.

- Bail of Personal Property
- Real Estate Bond

➢ Others:

- Raffle and Draw Deposit

What is it?

It is a commercial contract in which the settlor contributes goods or rights that will be administered by a Trust institution for a certain purpose in which the benefit will be for the Trustee (beneficiary).

Types of Trusts:

➢ Securities and Values 

➢ Real Estate

➢ Portfolio

The main purpose of this bond is to compensate the owner of the company for the damage committed by employees. Among the trustees we can find commission agents, administrative personnel, workers, vendors, service providers, among others. It can be issued in two ways: Individual (Individual, Identification and Combined) and Collective (Globla & MUV). The risks that can be covered are the following:

Theft Crime	Empowerment or willful destruction.
Abuse of Trust	Have something at your fingertips without occupying it for the intended purpose.
Fraud Crime	By taking advantage of a mistake, you unlawfully seize something or profit improperly.
Peculation	Public Servants.

➢ Criminal:

They are derived from a criminal trial and there are three types. At Yamazaki Insurance we take care of the prestige of our firm; consequently, these bonds are only issued by delicately analyzing the situation of our client.

Provisional Freedom	Grants the defendant freedom, but he/she must appears before the court when required while the process lasts.
Probation	The defendant has already been sentenced, but due to the imposed time of sentence and good behavior, he can serve his sentence outside of prison.
Preparatory Freedom	When he has served more than half of his sentence and considering the nature of the crime and his behavior, he may end his sentence out of prison.
Damage Repair	Guarantees the payment of damages caused to the victim or family members.
Pecuniary Sanction	Guarantees the payment of fines and infractions.

➢ Motor Vehicle Drivers Bond

Guarantees on specified dates in the contract, the fulfillment of credit obligations. They are generally credits granted for the purchase of goods and services or financing.

Supply	Gas, Refining (PEMEX), Lubricants.
Buy-Sell	Grant the payment of merchandise granted to suppliers of goods and services.
Financial	Stock Market and Financial Leasing.
Other Sureties	Importers and Exporters.