Oregon Conservatorship Bond
What is an Oregon Conservatorship Bond?
A conservatorship bond is a financial security contract required by the court. Letters of conservatorship will only be issued once the conservatorship bond with the required amount has been submitted to the court and once the said bond is approved by the court.
This legal contract will ensure that the court-appointed conservator will fulfill the obligations required by the court as well as cover losses in the event that the bonded conservator violates any of the obligations.
This requirement is stated in Section125.410 of the Oregon Revised Statutes.
Who is required to get an Oregon Conservatorship Bond?
A conservator who has been appointed by the court and who has been asked by the court to procure a conservatorship bond.
The Oregon Judicial Branch defines a conservator as “a fiduciary who is appointed by a court to protect and conserve the assets of an incapacitated person, or a minor child. The process is similar to the appointment of a guardian.”
The said conservator will make monetary decisions for a person who cannot make the type of decisions due to an illness, injury, disability, or for someone who is under legal age.
A conservator can be any person who is interested in the welfare of the incapacitated person or child.
Those who are seeking to be conservators must disclose the following information to the court:
- Whether or not they have been convicted of a crime
- Have filed for or received protection under the bankruptcy laws
- Have had a license revoked or canceled that was required by the laws of any state for the practice of a profession or occupation
They must also sign a consent stating that they are willing to serve. In some cases, the court may waive this requirement for a good cause shown.
How does an Oregon Conservatorship Bond work?
A conservatorship bond is an agreement between three parties: Obligee, Principal, and Surety.
- Principal: Conservator appointed by an Oregon court
- Obligee: Court (on behalf of the incapacitated person or minor child)
- Surety: The surety bond underwriter/bond provider that guarantees the Principal’s financial capability to the Obligee.
If for any reason, the conservator fails to fulfill the obligation set by the court, the court can file a claim against the bond. The Surety will perform an investigation to determine if the claim is valid. Payment will be made up to the total amount of the bond if it is a valid claim. The Principal will then be required to repay the amount that is paid by the Surety.
How much does an Oregon Conservatorship Bond cost?
The bond cost or bond premium will be a small percentage of the bond amount. The percentage will depend on the conservator’s credit score among other factors.
If the conservator has an excellent credit score, he or she will expect to pay just ½ % of the bond amount as a bond premium. Keep in mind that bonds larger than $250,000 will be priced based on a sliding scale.
The bond amount will be on a case-by-case basis and will be determined by the court.
As stated in ORS 125.410, the bond amount will be the “amount of the aggregate capital value of the property of the estate plus one year’s estimated income minus the value of securities and money deposited under arrangements requiring an order of the court for their removal and the value of any real property that the conservator, by express limitation of power, lacks the power to sell or convey without court authorization.”
How to get an Oregon Conservatorship Bond
We’ve created a simple, fast, and secure surety bond application process. Everything will be done through our secured digital management transaction system.
Just follow these simple steps to get bonded:
- Apply for an Oregon Conservatorship BOND HERE.
- Submit the necessary documents. Some of these are as follows:
- Copy of the court order
- Job performance history
- Credit report
- Financial report
Our expert underwriter will use these during the prequalification process.
- Pay the bond premium.
- Sign the indemnity agreement.
- Receive your surety bond.
Who is exempted to file an Oregon Conservatorship Bond?
A trust company who has been appointed as fiduciary or during the administration of the trust except as required by ORS 709.030 (Approval to transact trust business) and 709.130 (Indemnity bond when cash and securities of fiduciary account exceed stockholders’ equity or members’ equity in trust.