History of Surety Bonds
Surety bonds are such a regular part of our business world today that it is hard to imagine a time where we didn’t have them. In a previous blog, we mentioned that the first form of a surety bond occurred in 2750 B.C. We wanted to investigate a little more about the history of surety bonds. So, join us, as we take a short trip down surety bond memory lane! 2750 B.C. It all starts with our farmer friends in Mesopotamia, where one friend goes off to serve in the army and creates an agreement with another farmer to take care of his fields while he is away. In order to ensure this, a third party (a merchant) guaranteed that the second farmer would uphold his agreement. Later, in 2400 B.C. we find our first written surety bond, on a stone tablet. The surety guaranteed that one party would pay the other party. Fast forward a few hundred years, to 1790 B.C. and we find the law Code of Hammurabi, with the first legal surety document. We’re moving along here to 670 B.C. where we find our first written surety contract, written closer to how we understand surety bonds...
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