Personal Surety Bond
A personal surety bond requires the names of two sureties (other than the principal) who own land in the State of Tennessee and who are willing to sign the surety bond with the principal. The two sureties must not share the same address or live at the same address as the principal. The “principal” cannot be their own surety. The applicant must furnish the complete name and physical mailing address of the two sureties on the Surety Bond Application. The applicant must also furnish General Tax Certification (“GTC”) (tax cards) (i.e., a copy of their most recent property tax bill showing their property tax information). The GTC can be obtained from tennesseetrustee.org, the local tax assessor’s office, or county website. The GTC is used to show proof that the land is in Tennessee and the value of the property for each surety.
Corporate Surety Bond
A corporate bond is a surety bond written or backed by a bonding or insurance company that charges a premium fee to write and back the bond for the principal. A corporate surety bond does not require the signature of two sureties but requires State of Tennessee approval. Corporate surety may be obtained through many insurance providers. If an insurance provider does not write corporate surety bonds, there are third-party companies available that can assist with finding a company to write a corporate surety bond.
The principal must furnish the complete name and physical address of the insurance provider or bonding company who serves as guarantee of surety on the Surety Bond Application and request a Tennessee Corporate Surety Bond Form for their insurance/bonding company to use when writing a corporate surety bond. The bonding or insurance company’s attorney-in- fact must sign the corporate surety bond, stamp the bond with the company’s seal, and attach an original, written power of attorney, stating that they are licensed to transact surety bonds in the state of Tennessee, to the corporate surety bond before it can be approved.