Authentication of a Surety Bond issued by a Sister Concern F

[herman]

What in case a holding company also owns a surety firm and construction company? Would the Bid / performance bond issued by the surety company to construction one would be legal?

[Lancelot]

Yes their bonds would be legal though they are bonding their own interests.

Most bonding companies have re-insurers that over see their underwriting practices. If a surety bonds principals that do not qualify, especially for large guarantees, they could jeopardize their reinsurance policy, which would keep them away from doing so.