A New Mexico Surety Bond is a three-party agreement between a principal, an obligee and a surety bond company. The principal is the party who is responsible for the bond obligation. This is typically a New Mexico individual or company who needs a license, permit, or other guarantee running to the state. The party receiving the benefit of the bond is the Obligee. For many New Mexico surety bonds, this is the state of New Mexico or one of their departments. The Surety is a third-party bond company that is providing a financial guarantee of the principal's obligation on the bond. Should the principal default on their obligation, a party can make a claim against the bond.
Should a claim be made on a New Mexico surety bond, the Surety will investigate the claim. If they are required to pay the claim, they may seek reimbursement from the principal under the indemnity agreement. New Mexico surety bonds provide a lot of value by allowing a damaged party to collect from a Surety without having to go through what could be a costly procedure of collecting from the principal. As a principal, New Mexico surety bond claims should be avoided.
Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.
