Florida Receiver Bond | AmeriPro Surety Bonds | 844-589-9732
Florida Court-Mandated Receivers
Update July 2019: Our agency now offers the Florida receiver bond; in fact, a receiver surety bond in any state without a credit check inquiry for any amount up to and including $100,000. What this means is that after completion of an application, and payment of the premium, the bond is issued to you immediately. Amounts above $100,000 will still qualify for favorable premium rates; however, there is an applicant credit inquiry and an underwriter review.
A court-appointed Florida receiver manages property in a corporation as the corporation undergoes dissolution proceedings.
The duties of the receiver involve managing all the property wherever the corporation is located (see Section 607.1432 of the Florida Statutes).
As a condition of being appointed the receiver, the court will require a receiver to obtain a surety bond.
Florida Receiver Bond: The Purpose of this Surety Bond
Considering the fact that a court-appointed receiver has full control over the assets of a corporation in dissolution, the court wants the receiver to provide a financial guarantee in the form of bond coverage.
Therefore, the purpose of a Florida receiver bond is to guarantee that the receiver acts only in the interests of the corporation, and not out of self-interest.
More specifically, the receiver surety bond is a financial guarantee that protects the corporation from acts of fraud, theft, willful misconduct, or malfeasance of a court-appointed receiver in the management (or, mismanagement) of a corporation and its assets.
Of note are two things:
- The first is that the bond is required of the receiver, who is its principal and buyer;
- The second is that the surety bond does not protect the principal at all, but solely the corporation from any financial misdeeds committed by a principal against the corporation.
Florida Receiver Bond: Amount of the Surety Bond Required
The court, in the form of a court order, will determine the amount of a surety bond that you (or, for legal counsel, your client) are required to purchase.
Our agency, AmeriPro Surety Bonds, will need either a copy of that court order (preferably), or a statement on attorney letterhead detailing the amount of surety bond that the court requires.
This is to meet underwriting purposes.
Qualifying For a Florida Receiver Bond: Involves Full Collateral
Applicants for a Florida receiver bond are required to fully collateralize the surety bond amount required.
Collateralizing a surety bond typically takes place in one of two ways.
- One is the full cash collateral for the bond amount required;
- The second is an irrevocable letter of credit (ILOC) from the principal’s banking institution.
In a nutshell, an ILOC is a letter which your bank provides that guarantees funds will be paid if required. Once issued, the letter cannot be modified or canceled, unless all parties agree to the modification.
Florida Receiver Bond: Premium, or Cost of this Surety Bond
In addition to a Florida receiver’s bond full collateral, a premium or cost for the surety bond is required.
The cost of the surety bond is a small percentage of the bond’s overall amount.
Of note, are two important points:
- The receiver bond’s premium amount may be determined, in part, by an applicant’s credit report;
- The receiver bond premium renews annually for as long as the court proceedings are in progress. The receiver bond is not a onetime payment unless the court proceedings conclude before the renewal first period.
Other Consideration for the Receiver Bond:
The initial application can be taken right over the phone when you call our agency.
Applicants should be expected to answer questions about:
- Any prior bankruptcies, judgments, or tax liens, if applicable;
- Employment and income;
- Investments, including stocks, bonds, CD’s, and real property;
- Whether or not you have had a surety bond canceled in the past;
- Information about your financial standing and finances — assets and debts owed.
It seems like a lot of information, and it is, quite frankly.
But our goal here is to prepare you ahead of time before calling our agency so as to provide you an idea of what to expect.
Our questions are not accusatory; we are on your side, and we will work for you get the bond provided at a fair price.
The questions above are required by our underwriting department.
AmeriPro Surety Bonds:
The Florida receiver bond may take a few business days to be issued, but our agency is committed to keeping you informed every step of the way.
With a receiver bond, you can realistically expect phone calls asking for “more information”. It is important, therefore, that the lines of communication – and the ease of communication — is available on our part – and yours – at all times. We are committed to the free flow of communication between you and our agency.
AmeriPro Surety Bonds is a surety bonds-only agency offering court bonds, license and permit, and contractor bonds throughout Florida and nationwide.
Call us today and we will begin working for you for the surety bond you require.