What is an indemnity bond?

Answer by  Anonymous

An indemnity bond is a bond that protects (indemnifies) a third party from loss. The most common types are lost instrument bonds, and motor vehicle title bonds. Discuss your need directly with a surety agent (bondsman) with knowledge about these types of bonds. I recommend SuretyOne.

Answer by  mani (813)

Indemnity bond is defined as a bond to repay a lender in the event of a shortfall in a loan repayment. While purchasing a property and a loan is taken in bank the lender has to give indemnity bond stating that if the value of the property is less than the loan amount he will repay with other source.

Answer by  olive49 (424)

An idemnity bond is a bond that will be used to repay a lender in the event of default. For example, when taking a mortgage out on a home for greater than the home's value, an idemnity bond may be required by the lender to cover the excess amount lent.

Answer by  unni (259)

An indemnity bond is an agreement to hold a carrier harmless with regard to a liability. Its Coverage for loss of an obligee in the event that the principal fails to perform according to standards agreed upon between the obligee. Insurance, real estate and share market have the the indemnity bonds

Answer by  Mike39 (320)

It is a financial instrument that covers the lender's loss when the borrower defaults on the loan and the collateral is sold for less than the loan balance.

Answer by  RSureash (18)

Indemnity bond is a bond, which is to be repaid to his lender in case of shortfall to the loan repayment.