Depository Bonds allow banks to offer deposit protection in excess of the Federal Deposit Insurance Corporation (FDIC) insurance coverage to customers with deposits in excess of these limits (currently $250,000 per depositor). Typically, this type of bond is requested by educational institutions, governmental and quasi-governmental agencies, businesses and high-net worth individuals. This protection allows the bank to attract and retain customers without tying up the banks investments to back … [Read more...]
Archives for September 2013
Surety Bonds and Private Equity Acquisitions
By: Jack Anderson, President of Goldleaf Surety Services Private equity acquisitions of companies that need bonding have become more frequent in the past few years. This is partly due to the increase in the number of private equity firms that are looking for good investments. I think that it is also partly due to business owners being to busy today to do the necessary advance planning to ensure that an exit strategy is in place when they decide they would like to retire from the … [Read more...]