Programs

First Surety Corporation issues surety bonds on a partially-collateralized and a fully-collateralized basis. Collateral accounts are managed by Jacobs & Company, an SEC registered investment advisor. This provides our clients with the opportunity to receive a greater return on investment than other collateral deposit options.

The Partially Collateralized Program

Partially-collateralized bonds expose First Surety to greater financial risk.  Because partially-collateralized bonds require greater surety company capacity, in addition to the coal company's collateral investment account that supports some portion of the bond a capital investment equal to 10% of the bond value is requiredof the coal company.  This capital investment is in prefered stock of the publically traded parent companyof First Surety, Jacobs Financial Group, Incthis investment is passed through to first surety providing greater capasity for First Surety to underwrite the partially-collateralized bonds.  The capital investment earns a 4% dividend and is invested for seven years or the life of the bond, whichever is greater.

The 100% Program

This program permits existing collateral arrangements for financial assurance (CDs, irrevocable letters of credit backed by CDs, money market funds, compensating cash balances, or other low yielding securities) to be converted to a professionally managed portfolio with the potential of an enhanced return for the company required to post the collateral, reducing the overall cost of it’s financial assurance programs.