Ontario Financial Guarantee Bond (Subsection 78 (10))

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 template is provided in MS Word format and is easy to download, fill in and print.
• For use only in the Province of Ontario, Canada.