Surety Bonds Research Articles

Implementation of some types of ensuring the fulfillment of obligations in the course of inheritance legal relations

In the prepared article examines and analyzes the main problems of using a surety bond and other types of ensuring the fulfillment of obligations. Their interaction with hereditary legal relations is considered. In the plane of interaction of suretyship and inheritance, the author drew attention to the presence of personal elements in this type of provision, revealed what they consist of. According to the contract, the guarantor guarantees to the debtor’s creditor that the debtor will fulfill his obligation. The indication in the norm of the Civil Code of Ukraine that the guarantor vouches for the person of the debtor indicates the existence of the guaranty as a way of securing personal elements. The author proposes to understand this wording in such a way that the guarantor vouches for the fulfillment by the debtor himself, and not by some other person, being sure that the debtor will fulfill this obligation. Such a vision is manifested in the accessory nature of the scope of requirements to the guarantor, since in the event of a change in the obligation without the consent of the guarantor, as a result of which the scope of the debtor’s responsibility has increased, such a guarantor is responsible for the breach of the obligation by the debtor to the extent that existed before such a change in the obligation. A surety is qualitatively and essentially different from a pledge (mortgage), since the pledge is of a material nature and enjoys material protection. Suretyship refers to personal types of guaranteeing the performance of obligations, performed by a specific person, and legal succession to the suretyship is limited precisely taking into account its classification as a personal type of guarantee. This is important for inheritance under the principal obligation. The specificity of suretyship as a form of guaranteeing the fulfillment of an obligation indicates the presence of a significant specific weight of personal elements, which qualitatively distinguishes a suretyship from other types of security, in particular, a pledge. Personal elements accompany suretyship not only in terms of the scope of performance, but also in the area of legal succession, in particular in the event of the surety’s death. The presence of personal and even fiduciary elements in the suretyship limits succession to the obligation secured by the surety in the event of the borrower’s death.

Analysis of Surety Bond Insurance Products at PT Bumiputeramuda General Insurance 1967 Medan Branch

Analysis of Surety Bond Insurance Products at PT Bumiputeramuda General Insurance 1967 Medan Branch

Competition, coinsurance and moral hazard in banking

This study examines the interaction between bank deposit market competition, incentives to take risks on the asset side, and willingness to participate in the interbank market for liquidity coinsurance. The interbank market in the model has two countervailing effects on risk-taking. First, it allows for more profitable long-term investment, which adds to a bank’s charter value and decreases risk-taking motives. Second, greater investment in the long-term asset also makes risk-taking potentially more profitable, thus eroding charter value. Finally, risk-taking motives also influence banks’ decisions to participate in the interbank market. We demonstrate how a combination of capital requirements and posting a surety bond can restore charter value, promote cooperation and boost economic activity. Additionally, this measure does not limit competition in generating charter value and implies lower costs than capital requirements alone.

Effects of Construction Contracts on Performance: The Case of Construction Firms in Kampala, Uganda

The study aimed to investigate the influence of construction contracts on the overall performance of selected construction firms in Kampala district. Specifically, it sought to assess the impact of formally contracting personnel, evaluate the effect of special contract conditions, and examine the role of surety bonds on firm performance within the construction industry. A descriptive design utilizing quantitative methods was utilized. The study utilized purposive and random sampling techniques to select relevant respondents from various positions within construction firms, ensuring a comprehensive analysis of the subject matter. A sample size of 76 respondents was involved in the study. Data collection was facilitated through a structured questionnaire comprising Likert scale type questions, piloted to ensure relevance and logical flow. The study achieved an 88.3% response rate, with 80 questionnaires returned and analyzed. The study found that there exist a significant controlling effect on the relationship between (i) contracted (temporary) personnel and performance of construction firms (r=0.778, p=0.000), (ii) special conditions of contract and performance of construction firms (r=892, p=0.000) and (iii) surety bonds and performance of construction firms (r=0.830, p=0.000). Analysis of performance indicators highlighted the importance of factors such as adherence to construction codes, client satisfaction, and innovative practices in determining firm success. In conclusion, the study underscored the critical role of construction contracts in shaping the performance of construction firms in Kampala district. To optimize firm performance, it is recommended that firms prioritize the recruitment and retention of skilled personnel, adhere meticulously to construction contracts, and leverage surety bonds for risk mitigation. These findings provide valuable insights for construction industry stakeholders, guiding strategic decision-making to enhance operational efficiency and project outcomes.

Analisis Sharia Compliance pada Mekanisme Produk Kafalah Pembiayaan Surety Bond PT Penjaminan Jamkrindo Syariah Cabang Medan

The purpose of this study was to find out the mechanism of the Surety Bond financing kafalah product at PT Penjaminan Jamkrindo Syariah Medan Branch and to find out the sharia compliance analysis in the Surety Bond financing process and the suitability of its application in terms of sharia compliance dimensions and provisions. This research departs from the framework of thinking, namely the application of shariah compliance to the surety bond financing mechanism, where shariah compliance is the basic thing that distinguishes between shariah financing and conventional financing. If a sharia financing has followed sharia compliance by implementing all fatwas that regulate the financing of a product, then the application of sharia compliance is correct. As stipulated in the DSN Fatwa No.4/DSN-MUI/IV/20. regulates the ownership of goods in Surety Bond financing transactions. The research method used in this research is descriptive method. With primary data sources taken from the research location of PT Penjaminan Jamkrindo Syariah Medan Branch, namely regarding Shariah compliance in the mechanism of the Surety Bond financing kafalah product. While the secondary data sources used in this study came from books, articles, the internet, and other sources
 Keywords: Sharia Compliance, Jamkrindo syariah, produk surety bond

PT Jamkrindo Surety Bond Product Marketing Strategy 2024-2026

The Indonesian government, under the leadership of President Joko Widodo for two terms, gave significant emphasis on infrastructure development, as reflected in the annual infrastructure capital expenditure. Infrastructure development aims to promote balanced development and open up new economic areas. In addition to infrastructure projects, the government also allocates a portion of the capital expenditure to strategic projects. The procurement process for goods and services, both for infrastructure development and capital expenditure, requires Surety Bonds issued by guarantee companies or Bank Guarantees issued by banks. PT Jamkrindo is one of the providers of Surety Bond products, however, its marketing strategy is not aligned with the marketing objectives of increasing the volume of guarantees and profitability. Therefore, a new marketing strategy for Surety Bond products is needed, utilizing the Mullins 4C model approach: context, customer, company, and competitor. These four aspects are analyzed using macro analysis, industry analysis, consumer decision-making process (CDMP), brand image, points of parity, and points of difference. Through this analysis, a new marketing strategy for Surety Bond products is formulated.

Analisis Sharia Compliance Pada Produk Kafalah Pembiayaan Surety Bond di PT.Penjaminan Jamkrindo Syariah Kantor Cabang Medan


 This research is the result of a qualitative descriptive study that aims to answer questions regarding the mechanism for the issuance of Kafalah products for Surety Bond Financing and Sharia Compliance for Kafalah Surety Bond Financing products at PT Penjaminan Jamkrindo Syariah Medan Branch Office. This research is a type of field research. Data collection was carried out through direct interviews with Surety Bond staff and other operational divisions at PT. Medan Sharia Jamkrindo Guarantee. Supported by the study of documents related to research, such as statutory regulations, DSN-MUI Fatwas, and Kafalah surety bond certificates and official websites. Then the results collected were analyzed in the form of a qualitative descriptive analysis method. The results of the research obtained are the first, regarding the mechanism of the process of issuing Kafalah products for Surety Bond Financing from three parties, namely the Project Owner (Obligee) then continued by the Contractor (Principal), namely the party that gives the achievement and finally we submit it to the Guarantee (Suretyship) /Surety Company) to process Company guarantees to be given or claimed to the principal and submitted to the obligee. secondly, namely in carrying out the guarantee business activities of PT. The Jamkrindo Syariah Guarantee uses the Kafalah contract as determined by the National Sharia Council, namely DSN-MUI FATWA No.11/DSN-MUI/IV/2000 concerning Kafalah, including its application in Kafalah Surety Bond Financing products. However, there are still a number of things that need to be emphasized again, one of the pillars and conditions of Makful Anhu, namely being known by the guarantor and being able to hand over his dependents to the guarantor. So here a Surety bond is a guarantee issued by an insurance company to help the obligee due to the failure of the principal to carry out the project (default). So surety bonds are an alternative form issued by loss insurance companies (Guarantee) and PT. The Jamkrindo Syariah guarantee is expected to be able to maintain adherence to Sharia Compliance, which is currently well fulfilled.
 Keywords: Kafalah Surety Bond Products Sharia Compliance, Kafalah Surety Bond Product Mechanisms

Analysis of Underwriting Procedures in Minimizing the Occurrence of Surety Bond Claims in the Perspective of Sharia Insurance

A surety bond is a type of liability to bear the consequences of a non-performance of the principal in a construction contract as a form of guarantee to protect the interests of the oblige or the user of the service in the project drive work. The purpose of this research is to provide information on how an Underwriter performs Underwriting Procedures in minimizing the occurrence of Claims on Surety Bonds in PT. Public Insurance Bumida 1967 Field Branch. The method used by the Miles and Huberman techniques is the collection of data from interviews and literary studies. The results of this research show that the procedure used by underwriters in minimizing the occurrence of claims based on applicable company terms by analysing using the 5C method, conducting training of assurance analysis teams and holding risk monitoring. The claim arises due to the existence of a non-performance, which then obligee formally terminate the employment relationship with the Principal, Obligee will file the claim with the Guarantor Company. In Islamic view, surveillance and risk analysis are permitted, but in this procedure the principle of help is eliminated, the investment of funds of any sector, and the occurrence of gharar, in this agreement is prohibited in the principles of Shariah. On the other hand, underwater purposes to preserve and preserve the authenticity of the treasury.

Seleksi Risiko Pada Produk Surety Bond Era Pandemi Covid-19 Pada Pt. Bumiputera Muda 1967

It is important for insurance companies to carry out a risk selection of the risks that exist in the insurance products offered carefully and thoroughly in order to avoid large losses due to claims. After the COVID-19 pandemic catastrophic event, the company became more vigilant about the risk selection process in each of its products, one of which is a surety bond product at the insurance company PT Bumiputera Muda 1967 Serang Branch. The underwriter is trained to be able to recognize every potential risk that exists in the prospective insured by carrying out the underwriting process effectively and accurately. In this study, it will be discussed about the underwriting procedures carried out by PT Bumiputera Muda 1967 Serang Branch in determining risk selection on surety bond products during the co-19 pandemic. The results of this study show that in surety bond products there are several stages, namely: The principal contacts the agent, the analysis process, data input, print the policy. Where there are 4 types of guarantees including bind bond, performance bond, advance payment bond, and maintenance bond. The obstacles faced by the underwriter are restrictions on surveys of field conditions, survey reports are additional requirements given by the underwriter in the risk selection process for surety bond products after the Covid-19 pandemic.

Surety bond and the role of insurance companies as regulators in the context of brazilian infrastructure projects

Unfinished infrastructure projects are a persistent problem in Brazil and deprive the population of essential resources and services for its growth and development. Brazilian Law No. 14,133/2021 changed the legal regime for surety bonds, providing incentives for insurance companies issuing surety bonds to manage even more effectively the risks inherent to infrastructure projects, which could help reduce the number of unfinished projects. This article discusses whether it is likely that insurance companies issuing surety bonds will play a positive regulatory role in the context of public infrastructure projects and help reduce the number of unfinished projects. We conclude that unless the Brazilian government plays a strong oversight role over insurance companies that are acting as regulators, Law No. 14,133/2021 is unlikely to achieve its goals.

Two Anecdotes of Pie

Two Anecdotes of Pie Donald Platt I Wallace Stevens lovedpie. His neighbor brought him a chocolatesilk pie, dark as a starless night. “What do youcall this pie?” he asked, he who had “placed a jarin Tennessee.” She smiled and replied,“Heavenly Pie.” That jar had tamed “the slovenlywilderness” around him. “Well,” he said,raising a piece on his fork slowly towardshis mouth, hungry after having walked home froma long day writing surety bonds at theHartford Accident and IndemnityCompany on Asylum Avenue,“Open the pearly gates.” II I am so loved byyou, who walk through rain [End Page 106] for twenty minutesto my apartment, carrying ina glass pie pan wrapped in a soft burlapbag to keep it warm from the oven, onewhole, paw-paw, lemon grass, and ginger pie.You grew the paw-paws, shook them when ripe downfrom the tree. Deseeded them. Scooped out theirbutter-colored flesh. Puréed it. Mixed itwith vanilla sugar, spices, whole milk, eggs.Poured it into its graham-cracker crust.Baked it until it turned golden as theharvest moon rising over a lake, castingits moonlight on the dark water to makean upside-down exclamation pointof light the color of gnarled ginger root.You are allergic [End Page 107] to paw-paws. You stayhungry and smile while you watch me devour onelarge slice, then clamor for more caramelizedmoonlight. [End Page 108] Donald Platt Lafayette, Indiana Copyright © 2023 Johns Hopkins University Press

Powers and Practices of Courts An Analysis of Granting Bail in Pakistan

The procedure of law in order to decide the bail applications either prearrest or post arrest is well defined during the last decade by many judges of high court and Supreme Court. And one of the settled rules is that the court needs to make tentative assessment of available facts and story of FIR at the bail stage rather than the deeper assessment. In criminal justice system it is the need of time to review the law related to the surety bond because bail does not mean that the court of law will not fulfill the remaining procedure. Bail in the matter of prearrest is the discretion of the court and bail in the matter of post arrest is matter of right rather than discretion. In this context, this paper analyses powers and practices of Courts for granting Bail in Pakistan. It argues that Courts in Pakistan has discretionary powers in some cases for granting Bail. However, such exercise should be done in a prescribed manner and in due course.

The Rise of Nonbanks and the Quality of Financial Services: Evidence from Consumer Complaints

We show that as nonbanks' market share increases in a local residential mortgage market, the quality of mortgage services in the market improves. Two instrumental variable analyses exploiting (1) stress tests conducted by the Federal Reserve, and (2) mortgage industry surety bonds required by each state confirm this finding. We find evidence that as nonbanks grow their market share, they develop a specialty in servicing lower-income borrowers and increase investment in technology, leading to improved service quality. This improvement in service quality is more salient in counties with a higher percentage of minority populations.

Surety bonds and moral hazard in banking

We examine a policy in which owners of banks provide funds in the form of a surety bond in addition to equity capital. This policy would require banks to provide the regulator with funds that could be invested in marketable securities. Investors in the bank receive the income from the surety bond as long as the bank is in business. The capital value could be used by bank regulators to pay off the banks’ liabilities in case of bank failure. After paying depositors, investors would receive the remaining funds, if any. Analytically, this instrument is a way of creating charter value but, as opposed to Keeley (1990) and Hellman, Murdock and Stiglitz (2000), restrictions on competition are not necessary to generate positive rents. We demonstrate that capital requirements alone cannot prevent the moral hazard problem arising from deposit insurance.

Analisis Proses Underwriting pada Produk Kafalah Pembiayaan Surety Bond di PT Penjaminan Jamkrindo Syariah Cabang Medan

The purpose of this study was to determine the Underwriting Process for the Surety Bond Financing Kafalah Product at PT Penjamina Jamkrindo Syariah Medan.This creates a healthy competitive environment between contractors and prevents the emergence of an unfair competition climate, such as monopoly, which may be carried out by principals/contractors with very large sums of money. Equitable regional development across Indonesia may result in a just and successful society, and it is inextricably linked to development projects. In Indonesia, a presidential edict stipulates that any development project procurement must not only satisfy administrative requirements, but also give assurances. PT. Jamkrindo Syariah is one of the insurance businesses that may provide surety bonds. To get a surety bond guarantee, the principal must submit the required papers to PT. Jamkrindo Syariah, which must then go through an underwriting procedure to assess whether the project is feasible. If possible, a policy will be given; otherwise, PT. Jamkrindo Syariah will send the principal a refusal letter.
 Keywords : Surety Bond, Underwriting

Permasalahan Surety Bond Sebagai Jaminan pada Pengadaan Konstruksi Milik Pemerintah di Universitas Bengkulu

This research aims to identify and analyze the existence of a Surety Bond as a guarantee in the procurement of government-owned construction, to analyze cases that arise in a Surety Bond as a guarantee in a government-owned construction procurement application, and to identify and analyze the application of a Surety Bond as a guarantee in construction procurement. at Bengkulu University. The research method was tested empirically and sociologically, information was obtained by means of a literature review and field research using direct interviews with parties involved in taking action against the research object's problems. The research results show that the existence of the Surety Bond as a guarantee in the procurement of government-owned construction is an indemnity agreement, the surety acts as a guarantor and is equal to the principal debtor who has the obligation to pay off his debts to the obligee together. If the guarantor is the principal who for some reason is negligent or negligent in fulfilling the obligation to complete the work promised to the obligee, the surety will guarantee on behalf of the guarantor who pays compensation up to the maximum amount determined by surety. Surety Bond as a guarantee in the government's construction procurement application is related to the transfer of risk, where the risk will shift to a third party (Insurance Industry). If the principal is negligent in carrying out its obligations, the surety who wants to pay the damages to the oblige (project owner) matches what is stated in the suretyship. The time limit for payment of compensation is within 14 working days after the guarantor receives notification of non- compliance of PPK or ULP. The application of the Surety Bond application as a guarantee in the procurement of construction at the University of Bengkulu was tried with the branch insurance industry. The branch insurance industry did not provide the guarantee to the head office in Jakarta, so the Head Office in Jakarta refused to pay the claim.

PENYELESAIAN KLAIM DAN SUBROGASI OLEH SURETY COMPANY TERHADAP PRINCIPAL WANPRESTASI DALAM PERJANJIAN SURETY BOND

<p>This research aims to examine the problems in the disbursement of Surety Bond claims by oblige against PT Askrindo Persero against the principal who wanprestasi in the implementation of the funneling work. As for this research, using empirical methods and descriptive analytical that provide an overview of certain symptoms in order to get the data as accurate as possible. Data collection techniques are carried out by Literature material Studies and Interviews to Underwriting Staff. The results of the study, against the settlement of Conditional Claims are not in line with Presidential Regulation No. 12 of 2021 which requires one of them is easy to disburse. The problem of recovery implementation experienced by Surety Company in surety bond guarantee is the absence of special arrangements regarding subrogation rights owned by Surety Company as a guarantor.</p>

Surety Bond in Infrastructure in Brazil: Transaction Costs and Agency Theory Perspectives

ABSTRACT Context: infrastructure projects assume the use of intensive capital and the participation of several actors, where the institutional environment influences their respective contractual arrangements. A financial instrument for project governance is surety bond (SB), whose purpose is to ensure compliance with the contracted object. However, research involving SB in the context of emerging countries such as Brazil is still incipient. Objective: this study aims to understand the use of SB in Brazil and proposes a conceptual model for analyzing transactions. It contributes to the literature by investigating the relationship between the actors and transactions involved in SB using the transaction costs theory and agency theory perspectives. Methods: this study adopts a qualitative methodology using primary data collected with 10 in-depth semi-structured interviews with market professionals with substantial experience in SB. In addition, it uses secondary data based on debate and a specific lecture on the topic involving the reality and the use of SB. Results: the findings indicate that the agency problem and the high transaction costs in Brazil prevent the development of this risk coverage market, giving rise to targeted public policies. Conclusion: the proposed conceptual model reflects the various specific transactions in the use of SB, the underlying phenomena and the validation of propositions related to market failures, and the institutional environment’s influence.

Surety Bond in Infrastructure in Brazil: Transaction Costs and Agency Theory Perspectives

ABSTRACT Context: infrastructure projects assume the use of intensive capital and the participation of several actors, where the institutional environment influences their respective contractual arrangements. A financial instrument for project governance is surety bond (SB), whose purpose is to ensure compliance with the contracted object. However, research involving SB in the context of emerging countries such as Brazil is still incipient. Objective: this study aims to understand the use of SB in Brazil and proposes a conceptual model for analyzing transactions. It contributes to the literature by investigating the relationship between the actors and transactions involved in SB using the transaction costs theory and agency theory perspectives. Methods: this study adopts a qualitative methodology using primary data collected with 10 in-depth semi-structured interviews with market professionals with substantial experience in SB. In addition, it uses secondary data based on debate and a specific lecture on the topic involving the reality and the use of SB. Results: the findings indicate that the agency problem and the high transaction costs in Brazil prevent the development of this risk coverage market, giving rise to targeted public policies. Conclusion: the proposed conceptual model reflects the various specific transactions in the use of SB, the underlying phenomena and the validation of propositions related to market failures, and the institutional environment’s influence.

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