Learn how to avoid becoming a victim of bond fraud. This is Part 2 of NASBP General Counsel Martha L. Perkins' article. Part 2 was published in the Winter 2015 newsletter of the Fidelity and Surety Law Committee of the American Bar Association's Tort Trial & Insurance Practice Section on pages 9 and 28 to 30. Part 1 is posted at NASBP.org as well.
All construction industry stakeholders can and should combat surety fraud by taking steps to verify the legitimacy of the surety and to ensure that the surety authorized the bond. In addition to providing guidance to contractors, subcontractors, suppliers and obligees, the article describes the law concerning the authority of corporate sureties and individual sureties to issue bonds and examines case law involving fraudulent sureties and bonds. #RiskManagement #Issues #IssueBriefs #SuretyIndustry #Advocacy