New York Eminent Domain Performance Bond
Need information about this surety bond? Read on!
What is a New York Eminent Domain Performance Bond?
You need to obtain this bond if you are donating a piece of real estate property to the Department of Transportation of the State of New York in order to obtain a permit.
The said property is being acquired by the State of New York by eminent domain. This bond is part of the Agreement of Adjustment that you will enter into with the State of New York.
It will be stated in the said agreement that you (Principal) will secure to the State of New York “a full release of all claims by reason of the acquisition, except such claims as may be specifically excluded by said Agreement.”
Your compliance to the Agreement of Adjustment is the main reason why this bond is required.
The bond will only be released once the closing letter by the Real Property Bureau of the Office of the New York State Attorney General has been issued. The letter will stand as proof that the Principal has fully complied with the Agreement of Adjustment.
How much does a New York Eminent Domain Performance Bond cost?
The bond premium or the amount you need to pay the Surety bond provider will depend on two factors:
- Bond amount – this will be determined by the Commissioner of Transportation of the State of New York
- Your credit score
Those who have excellent credit scores will be eligible to pay as little as 1.5% of the bond amount.
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How can I get a New York Eminent Domain Performance Bond?
APPLY FOR THIS BOND – We begin the bonding process with an application. You may send your application for this bond HERE!
UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
In order to avoid any delay, make sure that your requirements are complete prior to submitting them.
ISSUANCE – Once the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you as soon as the indemnity agreement has been signed.
How does a New York Eminent Domain Performance Bond work?
This bond will serve as an enforceable agreement among three parties, namely:
Principal – permit applicant
Obligee – Department of Transportation of the State of New York
Surety – surety bond provider
The Principal and the Surety will partner in assuring the Obligee that the Principal will comply with the Agreement of Adjustment. If the Principal fails to do so, the Obligee can file a bond claim.
The claim will first be investigated by the Surety before it is settled. Once the Surety has settled the claim, the Principal will reimburse the Surety for the payments made.
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