FAQ
“Contract whereby a person (surety) agrees with the creditor to pay on behalf of the debtor, in the event that the latter incurs in a default.” Civil Code of the Federal District Art. 2794
Accessory contract by which the Surety Company (guarantor) agrees with the Beneficiary (creditor) to pay on behalf of the Principal (debtor) in the event that the latter incurs in a default.
Characteristics of a bond:
- It is an accessory to a parent agreement, it cannot exist if there is no obligation giving rise thereof.
- The principal may be bound to less and not more than the principal debtor.
- It will be enforceable until the primary liability is settled.
- The principal may contest all exceptions inherent to the primary liability, including the causes to claim the bond.
- The guarantor who pays, becomes entitled to the rights of the creditor against the debtor.
- The obligation of the guarantor is discharged at the same time as that of the debtor.
Surety Institution (Guarantor)
Also known as Surety Company, it is a corporation authorized to organize and operate pursuant to the Insurance and Law on Insurance and Surety Institutions with the purpose of issuing bonds for consideration. The Beneficiary (creditor) becomes liable in the event the Principal (Debtor) incurs in default.
Principal (Debtor)
Individual or Corporation who agrees with the Beneficiary to discharge an obligation.
Beneficiary (Creditor)
Individual, Corporation, or Authority to whom the bond is issued, who demands its fulfillment, namely the creditor of the primary liability that is being guaranteed.
Intermediary or Bond Agent
Individual or Corporation authorized by the National Commission on Insurance and Sureties (CNSF) to carry out intermediation activities in acquiring surety bonds.
Indemnitor
Individual or Corporation who is jointly bound with the Principal before the Surety to fulfill the obligations.
- Fidelity Bonds
- Court Bonds
- Administrative Bonds
- Credit Bonds
Minimum Requirements for an Individual: Principal or Indemnitor
Original documents must be provided
- Multiple Bond Request Contract and, where appropriate, Addenda and annexes completed and signed
- Personal interview completed and signed
- Credit Bureau format completed and signed
Readable copies must be provided
- Official ID
- Current Proof of Address, no more than 3 months old
- Copy of the Taxpayer Identification Card (R.F.C.)
If you are an Individual (with business activity) you must also provide:
- Annual Tax Return ISR of the immediately preceding fiscal year
- Recent partial Financial Statements signed by an Accountant
- License of the Accountant who signed the partial financial statements
Note: For further information, contact the closest office to your location.
Minimum Requirements for a Corporation: Principal or Indemnitor
Original documents must be provided
- Multiple Bond Request Contract and, where appropriate, Addenda and annexes completed and signed
- Personal interview completed and signed.
- Credit Bureau format completed and signed
Readable copies must be provided
- Official ID of the Legal Representative
- Current Proof of Address, no more than 3 months old
- Copy of the Taxpayer Identification Card (R.F.C.)
- Articles of Incorporation
- Deed evidencing the Powers of Attorney of the individual who signs as the Company’s Legal Representative
- Share capital amendments protocols, if appropriate
- Annual Tax Return ISR of the immediately preceding fiscal year
- Recent partial Financial Statements signed by the accountant of the company
- License of the Accountant who signed the partial financial statements
Note: For further information, identify the closest office to your location.
Documents of a Real Estate Property as Collateral
- Entire copy of the Title Deed (Purchase-Sale, Accord and Satisfaction, Assignment, etc.) of the Real Estate Property showing the registration information with the RPPC
- Free of Lien Certificate or Investigation
- Copy of the Marriage Certificate, in the event that owner is married
- When the bond expires as well as the primary liability.
- When the primary liability is fulfilled.
- When it is paid.
- Due to direct termination causes of the bond (expiration, statute of limitations, setoff, unsecured extensions or deferrals, transaction, confusion, novation …)
To request the cancellation of bonds, you must submit any of the following documents:
- Document signed by the Beneficiary authorizing the cancellation of the Bond including address, telephone number, name and position of the undersigner.
- Original Surety Bond.
- Certificate of delivery, either partial or final completed and signed, which amortized amount complies with the covered liability.
- Electronic invoices and statement of account evidencing the payment, the amount of which has to comply with the covered liability.
- Certificate of delivery, provided that there are no outstanding balances of the principal.
- Estimates, the amount of which has to comply with the covered liability.
- Certificate of delivery.
- Handover certificate.
- Settlement.
- Deed of discharge of obligations and rights.
When the Beneficiary of the Bond is a Federal State, States, Municipalities:
- Including the publication in INFOMEX.ORG.MX evidencing the fulfillment of the covered liability.
The information submitted via email for cancellation of bonds must be sent in PDF format for each bond to be canceled, when it comes to the return of Policies or additional transactions of the Bonds, the original document must be sent.
The documentation to provide will depend on the Type and amount of the Bond, as well as on the Beneficiaries, so, for more information, contact your Service Office, or call 5551280700 or send an email to cancelaciones@libertyfianzas.com
Claims guide
Requirements file a claim
Conditions to file a claim:
- A surety bond that guarantees the primary liability must exist.
- The default of the debtor (Principal) before the creditor (Beneficiary), regarding the covered liability (Liberty Fianzas) must be proven and substantiated.
Where to file a claim?
The Beneficiary of the Surety Bond or his Legal Representative must file the claim in writing and sign the original document to Liberty Fianzas, S.A. de C.V. at:
- Liberty Fianzas Service Offices
- Addresses of the Proxies Designated by Liberty Fianzas:
- Email: claimslf@libertyfianzas.com
Necessary information and data to file a claim.
The letter of complaint must have at least the following information:
- Date of the Claim
- Surety bond number relevant to the claim received
- Date on which the bond was issued
- Amount of the bond
- Name or designation of the Principal
- Name or designation of the Beneficiary and, where appropriate, the duly accredited legal representative
- Address of the Beneficiary for service of process.
- Description of covered liability
- Source contract reference (dates, contract number, etc.)
- Detailed description of the default of the covered liability giving rise to the Claim filing, including supporting documentation to confirm the declaration.
- Original amount claimed as principal amount, which may never be greater than the amount of the bond.
What is a “Constancia Tildación”?
In accordance with Article 189 of the Ley de Instituciones de Seguros y de Fianzas, these are the certificates that Liberty Fianzas, S.A. de C.V., issues to mark the marginal affectations registered in the Registro Público de la Propiedad on real estate granted as guarantee derived from the granting of one or several surety policies.
When can the “Constancia Tildación” be processed?
When the bonds granted are duly cancelled, without liability for Liberty Fianzas, as long as there are no debts owed by the surety, applicant, indemnitor and counter surety for premiums or any other concept derived from the contracting.
Who can apply for the “Constancia Tildación”?
The intermediary broker, principal, obligee claimant, and indemnitor, or any person who proves a legal interest in the property.
What are the requirements for requesting a “Constancia Tildación”?
- Request addressed to Liberty Fianzas, which may be received electronically and/or physically, using the following email cancelaciones@libertyfianzas.com
- Document certifying the cancellation of the bond.
- Certificate of the real estate not older than twelve months;
- Receipt and/or invoice that accredits payment.
PUBLIC NOTARY:
MEXICO CITY:
Public Notary 180 of Mexico City, Mr. Luis Eduardo Paredes Sanchez.
The payment for the ratification with the Public Notary is $5,100.00 plus I.V.A (by spanish acronym), amount that must be deposited to the following account:
| TITULAR: | NOTARÍA 180 DEL DISTRITO FEDERAL, S.C. |
|---|---|
| BANK: | BANORTE |
| ACCOUNT: | 0400776879 |
| CLABE: | 072180004007768794 |
JALISCO:
Public Notary 115 of Guadalajara City, Mr. Juan Diego Ramos Uriarte.
The payment for the ratification with the Public Notary is $3,270.00 including I.V.A (by spanish acronym), amount that must be deposited to the following account:
| TITULAR: | CONSORCIO JURIDICO MABA, S.C. |
|---|---|
| BANK: | BANSI, S.A., INSTITUCIÓN DE BANCA MÚLTIPLE |
| ACCOUNT: | 00099077115 |
| CLABE: | 060320000990771156 |
NUEVO LEÓN:
Public Notary 98 of Monterrey City, Mr. José Alejandro Treviño Cano.
The payment for the ratification with the Public Notary is $2,700.00 plus I.V.A (by spanish acronym), amount that must be deposited to the following account:
| TITULAR: | DANIEL DAVID COHEN OROZCO |
|---|---|
| BANK: | BANORTE |
| ACCOUNT: | 0470655034 |
| CLABE: | 072580004706550340 |
COMISIÓN NACIONAL DE SEGUROS Y FIANZAS
The payment for elaboration is $1,650.00 más I.V.A (by spanish acronym), amount that must be deposited in the following accounts:
| BANK | CLABE ACCOUNT | RECEIVES SPEI/TEF | AGREEMENT/ No. SERVICE |
|---|---|---|---|
| SANTANDER | 014180655022456171 | SPEI | 1335 |
| BANORTE | 072180005580059479 | SPEI | 64700 |
| BBVA | 012914002014195012 | SPEI | CIE01419501 |
The Law on Insurance and Surety Institutions, Title Six, about the Procedures, Chapter Two sets forth the PROCEDURES TO UNDERWRITE BONDS, for the enforceability of the secured obligations by Liberty Fianzas.
| LFIF ARTICLE | LISF ARTICLE | |
|---|---|---|
| 93 | 279 | Claims filed directly to the Surety Company |
| 94 | 280 | Claims filed in by Court Action (Special Bond Suit) |
| 94 bis | 281 | Motion for collateral collection before the Judicial Authority |
| 95 | 282 | Demand for payment for bonds written payable to the Federal State, the Federal District, the States and the Municipalities |
| 95 bis | 283 | Interests and compensation for default |
The grievance procedure before CONDUSEF is regulated in articles 63, 64, 65, 66, 67, 68, 68 bis, 68 bis 1 of the LPDUSF.
a. LISF – Law on Insurance and Surety Institutions.
b. LFIF – Federal Law on Surety Institutions.
c. LPDUSF – Law for the Protection and Defense of the User of Financial Services.
d. CONDUSEF – National Commission for the Protection and Defense of Users of Financial Services.
e. PRINCIPAL – Individual or Corporation who agrees with the beneficiary to discharge an obligation.
f. BENEFICIARY – Individual or corporation to whom the bond is issued, who is entitled to request fulfillment of the liability covered by the Surety Company.
g. SURETY COMPANY – Company authorized by the Federal Government to issue bonds for consideration. (Liberty Fianzas, S.A. de C.V.)