Surety

In finance, a surety, surety bond or guaranty involves a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults. The person or company providing this promise is also known as a "surety" or as a "guarantor".

A surety most typically requires a guarantor when the ability of the primary obligor or principal to perform its obligations to the obligee (counterparty) under a contract is in question, or when there is some public or private interest which requires protection from the consequences of the principal's default or delinquency. In most common-law jurisdictions, a contract of suretyship is subject to the Statute of Frauds (or its equivalent local laws) and is only enforceable if recorded in writing and signed by the surety and by the principal.

In the United States of America, the Miller Act may require a surety bond for contractors on certain federal construction projects; in addition, many states have adopted their own "Little Miller Acts". The surety transaction will typically involve a producer; in the United States the National Association of Surety Bond Producers (NASBP) is a trade association which represents this group.

Bail (Canada)

Bail in Canada refers to the release (or detention) of a person charged with a criminal offence prior to being tried in court or sentenced. A person may be released by a peace officer or by the courts. A release on bail by the courts is officially known as a judicial interim release. There are also a number of ways to compel a person's appearance in court without the need for an arrest and release. The Canadian constitution guarantees the right not to be denied reasonable bail without just cause. Unlike some other jurisdictions, there are no bondsmen or bail insurance policies in Canada.

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