What is a Maryland Guaranteed Payment Bond?
Know the who, what, and how of this surety bond!
What is a Guaranteed Payment Bond?
It is a surety bond required of members of the National Electrical Contractors Association and the International Brotherhood of Electrical Workers Local Union No. 26 who contribute to various funds such as the following:
- National Electrical Benefit Fund
- Electrical Workers Local No. 26 Pension Trust Fund
- Electrical Workers Local No. 26 Individual Account Fund
- Electrical Workers Local 26 Joint Apprenticeship and Training Fun
- Electrical Welfare Trust Fund
The surety bond will serve as a guarantee to the Local 26 IBEW-NECA Joint Trust Funds that the bonded member will fulfill his or her obligations. This includes promptly paying monetary contributions to the specified trust funds.
If the Principal (the member or the person who is providing the financial guarantee) misses a contribution or fails to fulfill his or her monetary obligations, the Obligee (beneficiary of the bond) will recover the amount through a bond claim.
What is the Guaranteed Payment Bond amount?
The bond amount will vary per applicant. This will be determined by the Plan Fund Office of the Local 26 IBEW-NECA Joint Trust Funds.
If you know your bond amount now and would like to find out what your bond premium will be, you may get your FREE SURETY BOND QUOTE from us HERE!
Those who have excellent credit scores will be eligible for a very low bond premium!
How can I get a Guaranteed Payment Bond?
You can easily get this surety bond from us! We will guide you through the entire process. We’ll make sure that you will understand what you are getting into.
Here’s how to do get bonded:
- You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
- After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Your surety bond will be issued and sent to you!
What are the surety bond conditions?
- The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in the State of Maryland
- The bonded member is obligated to honor the contractual agreements he or she has entered into for the benefit of the Local 26 IBEW-NECA Joint Trust Funds
- If the bonded member commits a violation, the aggrieved party will be eligible to file a claim against the bond