Administrator: A person legally vested with the right of administration of an estate

Applications: A form used to collect information to underwrite a risk.

Attachment: The legal process of taking possession of a defendant's property when the property is in dispute.

B

Balance Sheet: A financial statement listing assets, liabilities and net worth.

Bankruptcy Trustee Bonds: Bonds which provide a guarantee to the beneficiaries of the bankruptcy that the bonded trustees, appointed in a bankruptcy proceeding, will perform their duties and handle the affairs according to the ruling of the court.

Common Types of Bankruptcies are:

• Chapter 7: Calls for the "liquidation" of a business and allows for the sale of the assets to pay outstanding debts.

• Chapter 11: Calls for the "reorganization" of a business and the debtor remains in possession of the assets after the filing of a plan for the reorganization.

Bid Bonds: Bonds which guarantee that a contractor will enter into a contract at the amount bid and post the appropriate performance bonds. These bonds are used by owners to pre-qualify contractors submitting proposals on contracts. These bonds provide financial assurance that the bid has been submitted in good faith and that the contractor will enter into a contract at the bid price.

C

Capacity: A term that refers to the size of a bond which a surety is able to write.

Conservator: A person, official or institution designated to take over and protect the interest of an incompetent or minor.

Contract Bonds: A type of bond designed to guarantee the performance of obligations under a contract. These bonds guarantee the obligee that the principal will perform according to the terms of a written contract. Construction contracts  constitute most of these bonds. Contract bonds protect a project owner by guaranteeing a contractor's performance and payment for labor and materials. Because the contractor must meet the surety company's pre-qualification standards, construction lenders are also indirectly assured that the project will proceed in accordance with the terms of the contract.

Court Bonds: A general term referring to bonds required in some action of law