Surety Bonds
Surety Bonds: Any subsidiary obligation constituted to guarantee the performance of a principal obligation contracted by a third party. A bond is a promise by which a person, the surety, becomes responsible to another person, the beneficiary, for the debt commitment of a third person, the principal.
The types of Bonds that ASSA El Salvador will subscribe to are:
- Customs Bond: Guarantees the payment of taxes.
- Performance Bond: Guarantees that the terms of the contract signed by both parties will be fully complied with.
- Motorist Bonds: To guarantee the Vice Ministry of Transportation the payment of mishaps caused by underage drivers (15-18 years old).
Other types of bonds will be evaluated by the insurance company.
The requirements to apply for a Surety Bond in ASSA are:
- Photocopy of the Deed of Incorporation and its modifications, if any.
- Photocopy of the Board of Directors Credential certified by a Notary Public, in force, and registered in the Commercial Registry.
- Copy of Power of Attorney of the Legal Representative.
- Financial statements of the last three previous fiscal years, duly audited, and balance sheet of the last month.
- Photocopy of DUI and NIT at 150% of Legal Representative.
- Photocopy of NIT and VAT of the Company expanded to 150%.
- Current Commercial Registration and registration in the Registry of Commerce or the certification issued by the Registry of Commerce indicating that the Registration is in process – (annual process).
- Photocopy of the Bidding Terms and Conditions for Bid Bonds.
- Photocopy of the Contract duly signed by both parties (Surety and Beneficiary) in case of a Performance Bond.
- Promissory Note (must be requested after approval of the bond).
Required Forms:
- Bond application
- Integral Form
- Affidavit
- Promissory Note / Any other guarantee requested by the company.
- Politically Exposed Person Form (if applicable)
- Other (e.g., cashier’s check for the value of the bond, etc.)
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