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.
*Now available through our e-Bonding Portal!!!!
* Collateralized bonds available through our e-bond portal are subject to additional
underwriting and as such cannot be issued until this additional criteria is met.
Click on the bond you are interested in to get additional details on how to apply
for these bonds.
e-Bonds New
Our new BONDex Program provides our clients with a number rapid issuance
bonds which require you to only fill out one simple form on our site and the bond
will be mailed to you generally the same day. Approval for these bonds is
subject to a quick painless credit check and verification of funds available to
pay the first premuim.
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