What is the Difference between Surety, Ditch, Bail and Bond
Financial matters are really complicated and in practical life one should have complete information about the basic terms. Surety, Ditch, Bail and Bond are few commonly used terms in financial world. Here we are discussing that how they are different from each other.
Surety
Surety is the legal promise by one party, who take the responsibility of a borrower that if he fails to pay his debt, that party will be responsible for his deed. Surety is demanded in some sensitive cases when a person or company applies for a bank loan or anything else which involves huge money.
Ditch
When a person takes a loan from a company, he provides his permanent address. If he does not pay the installments of his loan back, and hides without notifying the company, he ditches. Usually people ditch credit card companies, as they do not pay them back.
Bail
Bail is the form of property or money, which is deposited in court for releasing a suspect from the jail. As a condition for his release, a suspect promises to appear in the court for the hearing if his case, whenever called by the court. If he fails to appear in the court the bail money or property will be confiscated by the court.
Bond
In financial terms bond is like a loan. We can call it a formal contract also, in which a person promise to pay back the borrowed money with interest at fixed intervals. In legal terms, a bind is the contract that if the suspect fails to appear in the court, full bail money will be paid to the court.
Surety vs Ditch vs Bail vs Bond
Surety and bond are similar terms. In both cases, a party promises to pay the full money, if the person fails to pay the money or cannot appear in the court. Ditch is just the deceiving practice. Bail is the property or money which a suspect deposits in the court for his release. If he cannot afford a bail, he will file a bond that he will pay the full amount of bail if he fails to appear in the court.
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