Metayer Bonding Associates Provides Complete Confidence Managing All of Your Surety Bond Needs
A DML Surety Bond is a surety bond required of owners if their real estate property has had a lien filed against it. It is basically a security interest that’s generally filed on the owner’s property by a supplier, contractor, or subcontractor.
This lien can be used to legally take the owner’s property and seek foreclosure in order to secure the payment of a debt or performance of some other obligation that was undertaken on the property in question. This surety bond ensures that any payment that’s due will be paid to the contractor that filed the lien if they win the case.
A DML Surety Bond allows the owner to discharge the lien in order to obtain the legal right to sell the property.
Despite the lien filed against the property, the owner can still choose to put it up for sale, get it renovated, or finish additional work. In this situation, the lien is moved from the property and assigned to the bond.
The bond amount is determined by the court. This ensures the payment owed to the claimant of the lien is completely taken care of and the issue is resolved. It’s also important to note that the DML Surety Bond may sometimes require collateral to secure the obligation. It can be in the form of cash or an Irrevocable Letter of Credit issued by a financial organization that’s approved by the surety company.
In some instances, although rarely, for bonds exceeding $250,000, real estate can also be used as collateral.
A surety may waive the requirement of collateral in case of full financial disclosures.
Michael F. Metayer, President & CEO
Rates vary between 1%-3% depending upon financial qualification. Rates are annually renewable until bonds are released.
It’s advisable to get in touch with a qualified surety bond agent and attorney when dealing with a discharge of mechanic’s lien and the subsequent surety bond to be posted.
Listed below are examples of the bond companies we work with.
“Metayer Bonding Associates has done an excellent job handling our bonding needs for the past twenty years. We were a small but growing contractor in NYC when Mike and his company first became involved. They have provided us with numerous bonds since… across the country, and just recently supported a $940mm High-Profile, Complete Building Conversion down in the heart of Wall Street. There are many difficult aspects about doing construction in NYC. Metayer Bonding Associates well understands this and is very adept at making certain that all of our bonding needs are handled in a prompt, professional fashion. We would highly recommend Metayer Bonding Associates to any contractor looking to improve upon their present bonding arrangement.”
“Our company designs and builds food processing facilities. Mike and the entire staff at Metayer Bonding Associates understands our specialized business. Mike, Anne, and Lisa show the same enthusiasm whether we are working on a $9,800,000 bond for our Rodeo Drive project in Beverly Hills, CA or our most recent $92,000 contract for the Sabritas Plant in Celaya, Mexico. They know all the right questions to ask to satisfy the bond company and with Mike's recommendation bonds are issued seamlessly. After almost 15 years, we have a great deal of trust in Metayer Bonding Associates and with them as a partner we know we are in the best hands.”