skip to main content

Household Finances

Question about a bond

21 years ago

DH and I own a small sign shop. Thinking seriously of selling. We've been told that a bond can be purchased to ensure we are paid. We are so naive. Who pays for the bond? Seller, or Buyer? Do any of you know how the bond works? Thank you for your help.

Sort by:Oldest

Comments (2)

joyfulguy
21 years ago
Hi Donna Loomis,

Being a resident of another country, I can't give good advice, but here are a couple of ideas.

When you buy a home or other property, often you may be required by the agency holding the mortgage to buy mortgage insurance, which means that, should you not pay, the insurer is required to make good on the loan. Here in Canada, if you are paying under 25% down, you are (almost always?) required to purchase such insurance.

It may be possible that whoever agrees to pay you whatever number of dollars to purchase your business can purchase similar insurance, which would pay you if the purchaser defaults.

Should you be the agent holding the promise to pay, you might require that they take out such insurance.

It might be very difficult to find such, and if found it might be very expensive, for a house usually ramins pretty well intact after a period, but if someone through negligence, inattention, laziness, lack of skill or whatever does not/is not able to keep the business functioning in a fashion similar to its former level, it could deteriorate rather quickly - thus losing a great deal of its value. In which case, the guarantor of the loan would have had to pay out a good deal of money to you - and be left with a bag of sand, so to speak, to show for it.

Not a good situation, from their point of view.

Even if a dozen such situations turned out well, one dead dog could be very hurtful to them - two would be a disaster, as their margin on each situation would not be large.

God wishes for success in whatever you choose to do with the business - and its aftermath.

joyful guy

P.S. I presume that it's not a partnership/ownership of the Loomis Courier/money carrier trtucking agency that you're referring to. (:^)

j g
donna_loomis
Original Author
21 years ago
Thanks for your input, JG. No, although money carrier agency was started by a distant relative (or so I've been told), this is not related. We are a small graphic and sign shop. You have given me some ideas to check out. Thank you again.
Related Discussions
Coping, Bond Beam, and Concrete Deck question
Q
Comments (2)
In regards to Pools94 comment, the builder should pour a small concrete ledge below the coping at least 6" - 8" deep and then to the copings edge. A band of rebar (tied to pools rebar) should also be considered as it will strengthen this ledge. Install the coping and then set up and pour the deck to this point, thus the expansion joint will then work properly. I have had to do this on many jobs even when the coping is 12" deep . . . on account of the gunite beam not being true to form. Saves cracking deck / coping problems later. Depending on your contract and material choices you may end up paying for this added work but it is well worth it.
...See More
Bonding question
Q
Comments (12)
OK. I think I have this figured out. For gunite pools, it sounds like PB use the rebar structure as the bonding grid and tie everything to it. It also appears that at least 4 tails are tied to the pool rebar before gunite for future tie in of the decking. If concrete deck is used, then the rebar must be tied together at 12" oc both directions and bonded by tying to the 4 tails from the pool rebar. If pavers are used, sounds like code will allow a single #8 buried at 4-6" around the pool, but that a copper #8 mesh out 3' is a better way to go... placed between compacted substrate and sand base. If any of this is wrong or not customarily how you see it done, please let me know. As for the lights... the green wire that goes from inside niche (in potting compound) through the conduit to the junction box is a BONDING wire, not equipment ground. I assume there is a separate connection point in an Intermatic junction box for the internal bond, since the bonding system is NOT supposed to be tied to equipment ground. As for the lights, do most pool builders just put the junction box at the pad or do they put it in a flower bed somewhere near the pool? ie. is it OK to run 75 feet of 1" conduit with water in it all the way to the pad? Seems like you just ask for trouble with all the possible leak points along the way. Or is the pool light gasket supposed to seal any additional water from getting behind the light once it is installed?
...See More
Help with backsplash and question on 4x4 on running bond
Q
Comments (11)
Thanks for all the nice words. Generally, I have second guessed everything I have done and feel sick to my stomach most of the time, so to have people say they like stuff makes me feel much better. I kind of like the diagonal idea too. Thanks, circuspeanut, for the picture. I don't think that detracts either. I will be doing a tile fireplace in the family room next door (not an open plan, but a large cased opening between kitchen and family room). It will be tiled in white Sonoma tiles on the diagonal with little 2x2 insets. We will also have a diagonal black/white tile floor in the front hall, so maybe diagonal is a theme. Now that i think about, the powder room paper will also have sort of a diamond pattern and will have lattice doors. I think I may go with diagonal. I really appreciate all the input. I will share more pictures of the kitchen when the drawers go in. There are more pictures on my thread about knobs--if that interests you.
...See More
Bonding equipment in Fiberglass Pool
Q
Comments (6)
"Question...You are saying the ladder, slide, light niche, filter,and pumps (all eq.) are attached to the same copper wire thus forming a grid? Is this the bonding grid or is it connected to something else?" That is the grid. It does not get a ground rod. It does not get connected to any electrical ground or panel. It is simply a network of interconnected items, to prevent the potential for voltage between the items. The internal lug inside a wet niche fixture is used if NM (PVC) conduit is used from the forming shell to the deck box. In this case a #8 solid bond is run along with the cord to the deck box and is connected to this lug inside the forming shell. The connection is then covered in a special potting compound.
...See More

Related Stories

WORKING WITH PROS 10 Questions to Ask Potential Contractors

By Ventana Construction LLC

Ensure the right fit by interviewing general contractors about topics that go beyond the basics

ORGANIZING Pre-Storage Checklist: 10 Questions to Ask Yourself Before You Store

By Laura Gaskill

Wait, stop. Do you really need to keep that item you’re about to put into storage?

REMODELING GUIDES Survive Your Home Remodel: 11 Must-Ask Questions

By Mitchell Parker

Plan ahead to keep minor hassles from turning into major headaches during an extensive renovation

LIGHTING 5 Questions to Ask for the Best Room Lighting

By Karen LeBlanc Design TV Host & Writer/Blogger

Get your overhead, task and accent lighting right for decorative beauty, less eyestrain and a focus exactly where you want

FEEL-GOOD HOME The Question That Can Make You Love Your Home More

By Laura Gaskill

Change your relationship with your house for the better by focusing on the answer to something designers often ask

WORKING WITH PROS 9 Questions to Ask a Home Remodeler Before You Meet

By Ventana Construction LLC

Save time and effort by ruling out deal breakers with your contractor before an in-person session

KITCHEN DESIGN 9 Questions to Ask When Planning a Kitchen Pantry

By Susan Redman

Avoid blunders and get the storage space and layout you need by asking these questions before you begin

PAINTING What to Know About Milk Paint and Chalk Paint — and How to Use Them

By Karen Egly-Thompson

Learn the pros, cons, cost and more for these two easy-to-use paints that are great for giving furniture a vintage look

CONTRACTOR TIPS Building Permits: What to Know About Green Building and Energy Codes

By Matt Clawson

In Part 4 of our series examining the residential permit process, we review typical green building and energy code requirements

PETS So You're Thinking About Getting a Dog

By Alison Hodgson

Prepare yourself for the realities of training, cost and the impact that lovable pooch might have on your house

Sponsored

Custom Home Works

10 Reviews

Franklin County's Award-Winning Design, Build and Remodeling Expert