Beware A Surety's Declination Option In Performance Bonds
August 13, 2012, 1:15 PM EDT
Law360, New York (August 13, 2012, 1:15 PM EDT) -- In the whirl of paperwork that accompanies construction loans, most developers and their lenders are careful to include the purchase of performance and payment bonds. But do they actually inquire about the terms of the bonds they are purchasing or review them upon receipt, to make sure the terms are correct and best serve their interests? Not necessarily.
Developers and lenders would be well advised to spend more time on the purchase of surety bonds than it takes to put a check mark on their to-do...