A receiver is a person appointed by the court to receive assets, property, and control of a company pending final decision of a lawsuit. A receiver may be required to obtain a receiver bond to secure the receiver’s obligations as required by the applicable state law. The amount of the bond is generally set by the court.
Receivers are appointed by the court, contract, or government official to take custody of assets, property, and control of companies as well as profits of a insolvent person or of a party whose property is in dispute in a legal case. Upon appointment of that receiver, a bond may be required to ensure that that receiver complies with all requisite duties of receivership.
The receiver may have to purchase a receiver bond, ensuring to the obligee that the receiver will faithfully perform their duty as a receiver in accordance with the court, contract, or government official granting them receivership as well as the applicable law. The bond acts as a way for the principal to recover from the surety company if the obligee fails to fulfill their duties. The surety company can then seek indemnification from the obligee upon payment to the principal due to a claim against the bond.
Colonial offers the direct and digital way to obtain receiver bonds. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your court bond instantly. The steps are easy — get a quote online, fill out your information, satisfy underwriting requirements, and enter your payment method. Print or e-file your bond from your office. It’s that simple!