What Is A Toll Bond?
Toll bonds are important types of guarantee bonds that are designed to pay for construction and upkeep costs of toll roads and bridges. Essentially, the toll bond is a guarantee between two parties: the city or state government and the construction contractor responsible for the work on the toll way. Toll bonds usually refer to any type of vehicle pass through that requires a toll, like a toll road, a bridge, an expressway, or a tunnel.
The toll bond is designed to ensure that the construction contractor will continue to get paid for costs and work done for building toll based roads or for providing construction upkeep. These types of guarantee bonds state that funding through taxes and revenues will be used to pay that company. In cases when the bond is not paid, it goes into default and stays that way until revenues are paid in full to the company.
Ox Bonding offers professional services in order to apply for and obtain many types of guarantee bonds, including the toll bond.