South Dakota Surety Bond Types
Four of America’s most influential presidents are memorialized in South Dakota’s famous Black Hills. These men promoted protection for all people, and so do the surety bonds offered in the Mount Rushmore State. Surety bonds can protect the businesses, its customers and the government agencies that work with it, depending on the specific instance. There are three major components involved in a surety bond: the principal, the obligee and the surety. The business who performs a contractual obligation is the principal, and its customers are the obligees. The surety obligates the principal to fulfill all promises made to the obligee in the contract.
Besides Mount Rushmore, South Dakota is also known for a number of other things. The state’s leading industry is financing and insurance, which accounts for 19% of the state’s gross domestic product. With such a large financing industry it’s no wonder the state government requires anyone engaged in money-lending to obtain a surety bond in an amount not to exceed $10,000. Doing so is necessary to obtain a valid money lending license in the state. The bond holds businesses accountable to the South Dakota Department of Commerce and Regulation Division of Banking, which acts as the obligee in this instance.
South Dakota Surety Bond Requirements
There are a number of other industries in South Dakota that also require their businesses to obtain surety loans. Checking with local and state regulations is a good idea to ensure that you’re meeting all the requirements. But perhaps you own a business that isn’t required to have a surety bond. That doesn’t mean you can’t take advantage of all the great benefits one offers. Many business owners in South Dakota get bonded as an added protection against things like employee theft. Obtaining a surety bond on your own also provides potential customers with an added incentive to work with you. They will know you genuinely care about your business and the activities that take place within it.
After you’ve made the decision to obtain a surety loan, the process only gets easier. You can find all the help you need online. If you don’t have any idea what type of bond you need or where to find more information, you can talk to a friendly surety bond specialist who will be dedicated to helping you find the bond that fits you best. Applying online only takes a few minutes, and getting a quote back only takes a few days. The overall process is fairly simple and well worth the investment.