Prepare a Financial Guarantee Bond under Subsection 78 (10) of the Ontario Construction Lien Act with this template form.
- This form of bond is to be used when title to a property is being transferred from a mortgagee to a purchaser.
- The mortgagee (principal under the bond) agrees to pay all lien claimants who have proved a lien.
- If the principal defaults, the surety will pay the lien claims, up to a maximum stated amount.
- A lien claimant cannot claim against the surety unless the principal defaults.
- The surety is entitled to an assignment of rights from any person who receives payment from the bond proceeds.
- The form includes an Affidavit of Good Faith by Mortgagee, an Affidavit of Execution (required if the principal is an individual), and a copy of the relevant section of the Construction Lien Act.
- Buy the form once, and it's yours to use as often as you require.
This Ontario Financial Guarantee Bond under Subsection 78 (10)
is provided in MS Word format and is easy to download, fill in and print.