What Are Receiver Bonds?
Receiver bonds, or receivership bonds, are a type of court bond which protects property or business owners when facing financial distress or legal disputes in court.
The court requires receivers to purchase a receiver bond to provide security that duties will be fulfilled. If the receiver fails to follow court orders or acts in negligence, a claim can be filed providing compensation to affected parties.
What Does a Receiver Do?
A receiver is appointed by the court as a neutral third-party to oversee a property or business while it undergoes legal disputes. Common responsibilities of a receiver include the following:
- Manage and preserve the property
- Handle payments to service providers, contractors and other financial transactions
- Resolve challenges
- Collect payments (ex. rent)
How Much Do Receiver Bonds Cost?
Your receiver bond amount will depend on the total value of assets being handled. The premium rate is a percentage of that total based on personal credit score. With good personal credit, you can expect to pay 0.5–3% for a receivership bond.
We offer receiver bonds in Connecticut, New York and Washington. Select your state below to apply for your receiver bond today!
If you need a receivership surety bond for a location not listed, please call 1 (800) 308-4358 to request a quote.
How Do Receivership Bonds Work?
By purchasing a receivership bond, you enter a legal contract between three parties:
- Obligee: The entity requiring the bond, in this case the court
- Principal: You, the appointed receiver purchasing the bond
- Surety: The entity backing the bond
The purpose of this bond is to guarantee the principal handles assets and completes duties correctly. If the principal breaks the bond terms, the surety will reimburse harmed parties for resulting damages.
How to Get a Receiver Bond
At SuretyBonds.com, we provide the quickest and easiest bonding process. To get a receiver bond, complete the following steps:
- Apply online at SuretyBonds.com
- Get a free quote within one business day
- Buy online or over the phone
- Receive your bond in the mail
- Sign and submit the bond form to your obligee
SuretyBonds.com ships all packages through FedEx to ensure quick and trackable delivery. Check out our Shipping FAQs for more information.
What Do I Need to Include in My Receiver Bond Application?
When applying for a receiver bond, include the following information per your state’s requirements.
For Connecticut:
- Your case number
- Your name and address (as the receiver)
- A description of what you have been appointed as a receiver of
- The name and address of the obligee (court)
- The name and address of the plaintiff and defendant
For New York:
- Your index number
- Your case name
For Washington:
- Your case number
- The name of debtor(s)
- The county of the court
If you have any questions about your application, email [email protected] or call 1 (800) 308-4358.
How Do I Renew My Receiver Bond?
Receivership bonds expire after one year. A SuretyBonds.com representative will contact you prior to the expiration date to discuss next steps and provide a renewal quote. If you have any questions, refer to our Surety Bond Renewal Guide or call 1 (800) 308-4358 to speak with a team member.
How Do I Update My Receiver Bond Form?
If you need to update information on your receiver bond, email [email protected] outlining the requested changes. We may be able to issue a bond rider document to amend your existing form free of charge.
