Wondering if a surety bond can be changed after it has been written? The simple answer is yes.
Under a surety contract, a principal is allowed to make changes to the bond. They can have any information changed, corrected or canceled anytime.
To modify a bond, you will first need to request a surety bond rider from your surety agency. A surety bond rider is the legal way of making amendments to the bond. A surety bond rider is also called consent of surety.
What Kind Of Information Can You Change?
It is important to understand that only specific information can be changed through a rider. This includes but is not limited to:
- The legal name of the principal
- The address of the principal
- The ownership structure
- The bond amount
- The bond term
The principal is responsible for requesting the change from the surety company. The surety company will issue a rider form for the principal to fill out.
After receiving a bond rider form, the principal can modify the bond with new amount information.
Can An Obligee Modify The Bond?
In addition to the principal, an obligee can have a surety bond modified. They may require the principal to use their own rider form.
However, in order to avoid confusion, the principal must ask obligee which rider form must be used.
An attorney-in-fact is required to sign a surety bond rider. At the same time, the form must be signed with a blue pen to show that it is not a copy. The principal must also sign the bond rider form.
To avoid the hassles behind modifications, make sure you do everything right the first time. Double all the information to catch mistakes that could cause problems later.
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