Iowa Surety Bond Types
The “hawkeye state” offers its consumers protection by requiring many of its businesses and organizations in varying industries to secure surety bonds. Iowa’s state government enforces legislation that requires bonding to ensure companies conduct business in an ethical manner. Surety bonds act as extra protection for a business’s consumers by guaranteeing the business follows through with all contractual agreements.
The agricultural industry is one of Iowa’s most reputable industries. Iowa lies in the heart of the Corn Belt and is sometimes considered “the food capital of the world.” Iowa’s grain dealer bond protects farmers who grow grain by ensuring dealers don’t take advantage of them. Another purpose of this bond is to influence grain dealers to follow their industry’s rules and regulations, which keep the general health of the public safer. This bond, like other surety bonds, holds a grain dealer, who acts as the bond’s principal, financially accountable to the state for the decisions it makes. If the principal is found to be breaking a law, it will be forced to pay retribution up to the bond’s full value to the state, which, in this instance, acts as the obligee.
Iowa Surety Bond Requirements
The grain dealer bond is only one bond out of hundreds available to businesses and individuals in Iowa. If you’re preparing to start a new business, be sure to check both local and state regulations regarding bonding in your industry. Keep in mind that surety bonds aren’t simply needed to follow the law; they’re a protective measure needed to guard consumers and business owners alike.
In some cases, the surety bond company will require a credit check and review of financial statements from you and your business before issuing you a bond to ensure that you are financially stable enough to pay the bond’s full face value if a claim were to be made against your bond. If you have any questions or would like to learn more about surety bonds in Iowa, feel free to browse SuretyBonds.com or contact a surety bond specialists who can help find the right bond for your needs.