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Commercial Bonds

Commercial surety bonds are types of guarantees that are required by different agencies, courts, government authorities or other entities in order to protect them against a given financial risk. These bonds are required in different contexts, whether in particular as an intrinsic condition for obtaining a permit or to guarantee the payment of customs duties or other taxes to various government authorities.


License and Permit Deposit

These bonds are required to obtain a license or permit and usually protect the consumer in the event that the Principal Debtor (merchant) does not comply with the financial obligations included in the laws and regulations relating to its commercial activities.

  • Submission bond
    The purpose of the submission bond is to guarantee the good faith of the contractor during the tender process. This bond stipulates that, if the contractor is chosen, he will conclude a contract within the deadlines provided for in the call for tenders with the client. This bond actually constitutes a selection instrument.
  • Engagement letter
    The letter of intent is usually filed with the bid bond and stipulates that the surety undertakes, if the contractor signs a contract with the client, to issue performance and payment bonds for labor and materials, if required by the latter.
  • Performance bond
    Allows the client to be guaranteed execution of the contract, in accordance with its provisions. Therefore, we understand that, if the provisions are not respected by the contractor, the client may request the intervention of the surety, by virtue of this bond.
  • Payment for labor and materials
    This bond protects the contractor's suppliers and subcontractors in the event of the contractor's failure to pay for the services they have rendered. If the Contractor does not make payments to its suppliers and/or subcontractors, the latter will have recourse to the surety for their payment, under this bond.
  • Maintenance deposit
    This type of bond is usually provided in exchange for the release of the contractual holdback, and guarantees the owner that the contractor will correct any defect, omission or faulty workmanship, for the warranty period, starting from the provisional or final acceptance of the work. If the contractor does not correct the defects during this guarantee period, the client may request the intervention of the surety, under this guarantee.
  • Demonstrate a guarantee of solvency to the client
    The Guarantors have minimum subscription standards in order to open a bond file and carry out punctual financial monitoring with the bonded entrepreneurs. In this sense, in the eyes of a client, the support of a guarantee towards a contractor offers certainty as to the financial health of the latter.
  • Reduce pressure on company liquidity
    When you provide a bond as a guarantee to your client, no amount has to be kept by your financial institution or be given directly to the client, as is the case in particular in using a certified check or bank letter of credit.
  • Better control of the warranty offered
    The bank letter of credit or certified check which can also often be used in the context of tenders can be cashed on request by the client. In opposition, a surety will only take up the cause in the context of a request for intervention in cases where the contractor is truly in default or is in particular incapable of carrying out a project.
  • Having a partner in the event of a dispute over bonded projects
    The majority of sureties have an in-house litigation department which offers support to its clients in the event of a dispute with a client.

Customs and Excise Bond


These bonds are required by government authorities and guarantee the payment of various customs duties, tariffs and taxes.


Main categories:

Imports and Payment of Duties

Customs Broker

Sufferance Warehouse and Storage



The excise bond guarantees that the principal debtor will remit certain excise taxes.


Main categories:

License for Brewers

License for Wort Makers

Spirits Manufacturer License

Tobacco Manufacturer License

GST – Non-Residents

Course Bonds

Two main types of course bonds:

Judicial Bail

Trustee Bond

Bankruptcy Administrator

Estate Administrator


Foreign Executor


Tutor and Curator

Bond for Loss of Documents

Deposit required to obtain replacement certificates when the originals of the following documents have been lost:

Stocks, Dividends


Canada Savings Bonds

Life Insurance Policies and Other Financial Tools

Contact an advisor



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