Some bond forms are written as "Continuous Until Released" or "Continues Until Released." This means the bond remains active until the obligee formally releases the bonded principal from their obligation. The official document provided by the obligee in these situations is known as a "release."
Put another way, these bonds can only be canceled if the obligee officially closes the bond requirement after the principal fulfills their obligation.
Bond types that often require official documentation from the obligee releasing the principal's obligation include, but are not limited to:
- Veteran's Affairs (VA)
- grading permits
- highway use
- right of way
- oil and well
If your bond requires a release, the bond must be renewed and the premium paid indefinitely until the obligee provides your official release documentation. Failure to do so may result in the surety company taking additional action to collect the owed premium.
If your obligation has been fulfilled, your obligee will provide you with an official release notice. You must file the official release documentation with your surety market before they will cancel your bond. Release paperwork varies by obligee but often requires an official signature and/or stamp to be accepted.
If your surety market does not have documentation proving your obligation has been released, they will keep the bond active and require renewal premium when the time comes.
If you need help releasing an active bond, call 1 (800) 308-4358 or email email@example.com, and one of our friendly representatives will be happy to help.