The History of Surety Bond

A surety bond is typically an agreement between a third party and the bank to make payments on behalf of the first party only in case he or she fails to make payments to the third party. An Ameripro bond is one such type of agreement between such parties.It gives full guarantee to the third party that the business they are getting into is ethical, faithful and legally sound and secured. This bond does not allow you to move away from the terms mentioned therein. It keeps the longest business relationship between the parties due to the term ‘surety’.

The History

In the pre-historic times, surety was ensured in the form of individual handwritten surety bonds. Mesopotamian tablet is the oldest known record of such a surety bond. There is an evidence of such surety bonds in the Code of Hammurabi. There are places such as Babylon, Persia, Carthage, Rome, somewhere where the ancient Hebrews resided and Great Britain where evidences of handwritten surety bonds are found.The Code of Hammurabi that provides the earliest written legal code was written somewhere around 1790 BC.

In Medieval England, Frankpledge became the first joint surety system that did not depend on a bond’s execution. Nearly later in 1840, the Guarantee Society of London became the first corporate surety bond system.The United States of America popped up with the Fidelity Insurance Company in 1865, which failed later. Later in 1894, the Heard Act was passed by the Congress covering surety for all the federal projects. In 1908, the Surety and Fidelity Association of America (SFAA) took birth to regulate the functioning of industries, promoting people’s understanding and confidence in surety bonds, and provision of a platform to discuss common problems and general interests of its members. SFAA holds a rating and advisory license and acts as a statistical agent for reporting surety and fidelity issues of people. These days, applicants feel comfortable opting for bonds such as Ameripro bond.

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