A Federal Fiduciary Bond protects the veteran’s fund up to the specified value on the bond. Bonds issued by VA Bonds.com are corporate surety bonds. The Federal Fiduciary bond is a promise to pay the Veteran’s Administration a specified amount if the fiduciary fails to meet their obligation or is negligent in their fiduciary duties.
This Federal Fiduciary bond is a contract among three parties. The Veteran’s Administration, the fiduciary, and the surety company. Through a Federal Fiduciary bond, the bond company agrees to uphold — for the benefit of the veteran — the obligations made by the fiduciary if the fiduciary fails to uphold his or her obligations to the veteran. The bond company pays out cash (to the limit of the bond) to the Veteran’s Administration in the event that the fiduciary fails to uphold his or her obligations.
Your duty as a fiduciary is to the veteran. Your specific duties are outlined and monitored by the Veteran’s Administration. The VA may request that VA Bonds.com verify a bond is in effect and if the veteran’s information is correct
You will pay a premium annually in exchange for the surety company’s financial strength to extend credit. In the event of a claim, the bond company will investigate. If it turns out to be a valid claim, the bond company will pay it and then turn to you for reimbursement of the amount paid on the claim and any legal fees incurred.