D

Damages: Term that refers to monetary measures of harm which may have occurred in a claim.

Defendant: The term that refers to the person or institution being accused in a court case.

Defendant Bonds: Defendant Bonds counteract the effect of the bond that the plaintiff has furnished. These bonds are more hazardous than plaintiff bonds. Often, they require the posting of collateral to be written.

E

Employee Retirement Income Security Act: The 1974 act that created a requirement for a bond to be posted, in the amount of ten percent of the funds, on the fiduciary of pension funds and profit sharing plans. (Often called ERISA)

Executor: A person appointed to execute a will.

F

Fidelity Bonds: Bonds designed to guarantee honesty. Generally, the bond guarantees honesty of employees. These bonds cover losses arising from employee dishonesty and indemnify the principal for losses caused by the dishonest actions of its employees.

Fiduciary: One who is appointed to act in the best interests of another. A fiduciary is a person appointed by the court to handle the affairs of persons who are not able to do so themselves. Fiduciaries are often requested to furnish a bond to guarantee faithful performance of their duties.

Fiduciary Bonds: Bonds which guarantee an honest accounting and faithful performance of duties by administrators, trustees, guardians, executors and other fiduciaries. Fiduciary bonds, in some cases referred to as probate bonds, are required by statutes, courts or legal documents for the protection of those on whose behalf a fiduciary acts. They are needed under a variety of circumstances, including the administration of an estate and the management of affairs of a trust or a ward.

I

Indemnification: The act of guaranteeing another repayment in the event of a loss.

Individual Bonds: A term generally used with public official bonds, which refers to bonds written in the name of the specific public official.