AuthorJeremy Rawson

Easy out bail bonds- Key points of bail bonds

For many construction companies and contractors, public works are a great opportunity for growth. However, how can they manage the risk in the construction projects or how are they responsible for finishing them on time? Due to these concerns, the bonds arise.

Key points of bail bonds

 

The bonds provide financial security and guarantee that the work will be done in a timely manner, covering the responsibility of paying subcontractors, workers, and material suppliers. For this reason, the bonds in the CDMX, as well as in all of Mexico, are fundamental to comply with the obligations acquired in public works tenders.

Today, in the Escarce blog, we share ten key points of bonds for public works, based on the Law of Public Works and Related Services:

  1. The agencies and public entities can choose the guarantee or bond that fits their needs, thus having the certainty of supporting the obligations of their project.
  2. Each time a fiscal year changes, the bond must be adjusted or changed.
  3. When contracting a compliance bond, article 91 specifies that the amount of the bond cannot be less than 10% of the total amount authorized to the contract in each fiscal year.
  4. If a contractor has a good record, the public agency can reduce the percentage of the compliance bond.
  5. If defects or hidden defects appear in the project, within the term covered by the bond, the public entity must contact the surety and notify the contractor in writing to correct or replace it.
  6. If you have a good quality bond or hidden defects, you can only cancel it according to the provisions of the policy.
  7. To make a bond effective, public agencies must send a request to the Treasury of the Federation. To make this request, they must have complete information about the subjects linked to the bond.
  8. Interesting fact: the bonds are included in the “indirect cost” section, in the general expenses of public works.
  9. In the public tenders, the bid bonds also come into play to guarantee the support of the bid submitted.
  10. The bond policy must include the following provisions :
    • Comply with all the agreements included in the contract.
    • To cancel it, they will need the administrative act of extinction of rights and obligations or, as the case may be, the settlement and liquidation of balances by the contractor.
    • The deposit will be valid during the contract period and will continue if there is an extension.
    • The surety agrees to submit to the procedures established by the Federal Law of Bonding Institutions.

In this aspect, there are two major challenges:

  • The public dependencies have to support their projects.
  • Companies must meet many objectives and obligations if they wish to participate in public works.

Winning a contract is not an easy task, because contractors must work hard and provide all their information: from their general data to their record in compliance contracts. Without a doubt, they must have a good performance in the sector, since their background is the key to obtain the opportunity to participate in a public project.

With more than 30 years of experience in the sector, in LionsBailBonds we offer personalized advice for bail bonds. 

The person offended by the crime

Who is the offended person and what rights and rights are recognized by our penal system

  1. Who is the person offended by the crime
  2. The right of lawsuit of the injured person
  3. Offended person: rights and rights
  4. Offended party civil party
  5. The jurisprudence on the person offended by the crime

Who is the person offended by the crime

Who is the person offended by the crime

The person offended by the crime is the holder of the legal asset protected by the criminal law violated seguito following the commission of a crime. SoggettoThis subject should not be confused with the injured party: the latter, in fact,? who suffers the damage resulting from the crime.

The distinction is important because if, as a rule, these two figures coincide, there are also cases in which it is not: think, for example, of murder, in which the person offended by the crime is the victim while the injured the offenders are his relatives.

The standards

The criminal code dedicates articles 120 et seq. To the person offended by the crime, while the code of criminal procedure articles 90 and following.

The right of lawsuit of the injured person

The penal code, in particular, does not give a definition of a person offended by the crime but focuses on it the discipline of the right to sue.

The offended person is in fact assigned the right to sue in all cases where for the crime he does not have to proceed ex officio or upon request or request, with the specification that if the offended persons are more than one the offense is punishable even if the lawsuit is proposed by only one of them.

Offended minor person, forbidden, disabled

In the event that the offended person is less than fourteen years of age or forbidden because mentally ill, his right to file a complaint may be exercised by the parent or guardian. If there is no representative or if the person exercising it is in conflict of interest with the injured party, the right to sue is exercised by a special administrator.

Instead, offended persons who are minors but have reached the age of fourteen or are incapacitated have the opportunity to exercise the right to sue. The right can also be exercised by the parent, guardian or trustee (even in the presence of a contrary declaration of will, expressed or tacit, of the minor or the disabled).

Offended person: rights and rights

Offended person: rights and rights

By virtue of the provisions of Article 90 of the Criminal Procedure Code, the person offended by the offense, in addition to exercising all the rights and powers that are expressly recognized by the law, can, in any state and degree of the proceeding, present statements? and, with the exception of the cassation judgment, indicate evidence, all of which also by appointing a lawyer pursuant to article 101 below.

Among the rights and faculties recognized by the law to the injured person, we recall:

  • the possibility of participating in non-repeatable technical checks (art. 360 Code of Criminal Procedure);
  • the possibility of viewing the documents filed pursuant to art. 366 cpp;
  • the possibility of asking the PM to activate the probative incident (art. 394 cpp) and view the relative documents;
  • the possibility of expressing their opinion regarding the request for extension of the duration of the preliminary investigations (art. 406 cpp) and to oppose the request for dismissal (410 cpp);
  • the possibility of entarepresenting a motivated request to the PM to present an appeal to any criminal effect (art. 572 cpp).

The person offended by the crime also:?

  • receives warranty information (art. 369 cpp);
  • receives notification of the decree setting the preliminary hearing (Article 419 of the Code of Criminal Procedure);
  • receives notification of the decree ordering the trial (art. 429 cpp);
  • receives notification of the decree ordering immediate judgment (art. 456 cpp).

The rights of the minor offender, forbidden or incapacitated

In the event that the offended person is a minor, forbidden due to a mental illness or incapacitated, the faculties and the rights attributed to him are exercised by the same subjects through which the same can exercise the right to file a complaint (see above).

With particular reference to the minor age, the civil procedure code specifies, in paragraph 2-bis of article 90, that, if on this circumstance there is uncertainty, the judge disposes, even ex officio, of an expertise aimed at verifying it and that if, even after the appraisal, doubts remain in this regard, the minor age is presumed for the purpose of applying the procedural provisions.

The rights of the deceased victim

In the event that, instead, the injured person has died as a result of the crime, our system attributes the exercise of all his rights and his rights to his next relatives or to the person who is connected with the person injured by a affective relationship or a relationship of stable cohabitation.

Offended party civil party

Offended party civil party

The rights and faculties of the person offended by the crime increase in the event that the person decides to constitute a civil party.

With the constitution of a civil party, essentially, this subject introduces the civil action within the criminal trial and can avoid asking for compensation for the damage suffered as a result of the crime by establishing a new civil case, parallel to the criminal one. In order to constitute a civil party, therefore, the offended person must also be damaged by the crime.

On the civil part and on the constitution of a civil party go to the guides:

– The civil party in the criminal trial

– The establishment of a civil party. Guide with facsimile

The jurisprudence on the person offended by the crime

The jurisprudence on the person offended by the crime

Below are the excerpts of some recent judgments that have concerned the role and the figure of the person offended by the crime.

“When the offended person represents the principal (if not the only) witness who has had the direct perception of the fact to be tested and is, therefore, substantially the only procedural subject able to introduce this evaluation element in the process, so that his story may be the basis for the defendant’s judgment of guilt, it must be subjected to a timely critical analysis, by comparing it with the remaining evidentiary material acquired (where possible) that can be used to corroborate his statement, or, where a verification “ab extrinseco” is not possible, through a careful and penetrating examination of the testimony, conducted with rigor and critical spirit, which invests the reliability of the declaration and the subjective credibility of the person who made it and who, however, is not based on from preconceived mistrust towards the witness, having to start from the assumption that, until proven otherwise, the witness, whether it is an injured person or a civil party, reports facts true or considered to be such “( Trib. Napoli n. 644/2018 ).

“The declaration with which the injured party, at the time of the complaint, establishes or reserves the right to become a civil party, must be qualified as a valid manifestation of the right to file a complaint” ( Cassation No. 52538/2017 ).

“The testimony of the injured person, especially when carrying a personal interest in ascertaining the fact, must certainly be subject to a more penetrating and rigorous control about his subjective credibility and the intrinsic reliability of the story (Section, 41461 of 2012, cit.), But this does not legitimize an a priori judgment of unreliability of the testimony itself (expressly forbidden as a rule of judgment) and does not allow to place it, in fact, on the same level as the declarations coming from the subjects indicated by the ‘Article 192 of the Code of Criminal Procedure, paragraphs 3 and 4, (in violation of the fee imposed by Article 192 of the Code of Criminal Procedure, paragraph 1) “? (Court of Cassation No. 35559/2017 ).

“On the subject of sexual offenses… the deposition of the offended person can also be taken on his own as a source of proof of guilt, where he is subjected to a positive investigation of the subjective and objective credibility of the person who made it, given that in this procedural context the assessment of the facts more often depends necessarily on the evaluation of the contrast of the opposed versions of defendant and offended party, only protagonists of the facts, in the absence, not infrequently, also of objective findings or other elements acts to attribute greater credibility, from the outside, to one or the other thesis “( Cassation No. 35559/2017 ).

Variable Income Treasury Bonds

In this article we will look closely at the Variable Income Treasury Bonds available to households, their potentialities and risks, and compare it with other alternatives available in the market.

What Are Treasury Bonds?

What Are Treasury Bonds?

Treasury bonds (TOs) are public debt securities. When you buy an OT you are lending money to a country so that it can meet your expenses or investments. As we will see later, all obligations have a set of characteristics:

  • Issuer – Who borrows money;
  • Possibility of transaction in the market – You can buy and sell when you want;
  • Interest rate – Also called coupon rate (with reduced exceptions). It is an annual fee, although it can be paid at another interval (for example, an annual rate of 2% will represent a half-yearly rate of 1%);
  • Term – Time of return of the money by the issuer to the buyer of the obligation;
  • Nominal Value – It resembles the stock price. Price at which the obligation is issued.

Is It Worth It To Buy Treasury Bonds?

Buy Treasury Bonds

Buying treasury bonds is something that can make sense in a diversified investment portfolio. Of course, not all products are suitable for all investors or at all market moments, especially if we are talking about products with risk or uncertainty in yields. Thus, we suggest two rules of prudence:

  1. Buy only products whose potentialities and risks you know and are comfortable with;
  2. Do not focus the entire risk of your portfolio on a single product (ie diversify).

What is the Risk of Variable Income Treasury Bonds?

What is the Risk of Variable Income Treasury Bonds?

Variable Income Treasury Bonds are risky products. From the list of risks we draw attention to the following:

  • Credit Risk – Whoever lends money to someone risks having someone else return the money. This is the credit risk. In order to measure the risk, it will be able to use Rating agencies (and here Portugal is not very well rated) and have some sensitivity to the political, economic and financial moment of the country.
  • Market Risk – Treasury bonds are traded in a financial market. In this way, they are permeable to the price oscillations, which end up being related to the perceived credit risk referred to above. Additionally, it is a risk that depends on the sentiment of investors, which as we know has very little rationality. If you keep the bonds to maturity know that this market risk does not run.
  • Interest Rate Risk – A last risk that is related to the possibility that the bonds will no longer be attractive to alternative products. Indeed, if we are talking about variable-yield bonds, this risk is diminished because if market interest rates start to rise, the yield on these bonds will be adjusted (not implying a devaluation of these bonds).

Characteristics of Variable Income Treasury Bonds May 2021

Characteristics of Variable Income Treasury Bonds May 2021

  • Minimum subscription amount – € 1,000 and possibility of purchase of additional amounts in lots of € 1,000;
  • Maximum Investment of € 1,000,000;
  • Term – 5 years (refunded May 2021);
  • Interest Rate – Euribor at 6 months + 2.20% (the minimum rate is 2.20% the same is to say that it does not admit negative Euribor);
  • Where to Buy – At any branch of BPI, CGD or NovoBanco Banks.

Worth to buy?

Worth to buy?

With such low interest rate term deposits we may be tempted to buy these “closed eyes” products. However, we suggest you note the following:

  • Interest Rate – The interest rate offered is potentially interesting, but keep in mind the value of the commissions that we will talk about next. Being variable rate protects the investor in the event of a rise in market interest rates;
  • Stability of the Product – The State can not change the rules unilaterally , which gives greater predictability (which has not been visible in the past in the case of savings certificates, for example);
  • Commissions – To buy, hold, receive interest and sell the bonds you will have to pay commissions to your bank. These commissions can be so high that they can make these products very unattractive;
  • Term – Make sure you do not need the money in the next 5 years because if you need to sell before that time you will incur the market risk we spoke about earlier;
  • Risk – Supposedly lending money to the state should be the least risky investment in the market … however, it is a risk in theory, especially if we consider that there is no Bond Guarantee Fund …
  • Amount – If you have amounts to invest above € 50,000 maybe it will make more sense to go directly to the capital market to make your purchase …
  • Diversification – By investing in these products ensure that you can diversify your risks.

Are OTs Better Than Time Deposits?

Are OTs Better Than Time Deposits?

If we compare OTs with 5-year term deposits we see that these products are potentially better in terms of both risk and return. Thus, if you have the possibility to invest more than € 5,000 and for a term of 5 years, you should opt for OTs instead of time deposits.

Are OTs Better Than Savings Certificates?

The OT risk is similar to the risk of savings certificates, as the issuer is the same (the State). However, OT interest rates are more interesting than savings certificates (except in the C series but in this case the premium will only last until the end of 2016). For lower amounts and for shorter periods, savings certificates should be a more advantageous option.

Are OTs Better Than Treasury Savings Certificates More?

Are OTs Better Than Treasury Savings Certificates More?

The OT risk is similar to the risk of savings certificates, as the issuer is the same (the State). The interest rates on its fixed component are similar in both products, and in OT they have the possibility of a rise in the future and in the CTP + the potential premium is dependent on GDP growth above certain levels. At the commissions level, CTP + are more interesting (they do not have all associated commissions). So to make your decision you will need to see what makes you more comfortable in terms of uncertainty.

And Why Not Investment Funds?

And Why Not Investment Funds?

It is possible to invest in Treasury Bonds of the Portuguese State and other states through investment funds. This allows you to diversify your risk, invest in smaller amounts and have more liquidity (without harming your return). It may happen that the rate is not so attractive, but there you are also taking less risk. Always think that more risk equals more return and that you should invest for longer terms to increase the likelihood of earning money.

Bail Deposit

The Urban Leasing Law imposes the legal obligation to demand and provide a DEPOSIT in cash, equivalent to a monthly rent when a housing lease is entered into.

Thus, this legal obligation is configured for the rental of all types of housing, regardless of whether it is considered free or with public protection.

The bond is defined as the guarantee of compliance, by the lessee, of all the obligations arising from the lease, both economic -payment of income and assimilated amounts (supplies, community fees, etc.) – as the own conservation of the leased object (maintenance of the floor and furniture).

The balance of the deposit in cash must be returned to the tenant at the end of the lease. If more than one month passes from the delivery of the keys without having been returned, the corresponding legal interest will begin to be accrued.

In short, the bond is an inescapable and necessary commitment to bring a rental to a successful conclusion, without the occurrence of ‘risk’ situations for any of the signatories. It is a security for the landlord and a commitment for the tenant in order to take care of the house and return it as it was received.

Constitution of the deposit of the deposit

Constitution of the deposit of the deposit

In our region, in order to make the deposit of the deposit, it is necessary to make a bank deposit of a rental fee in the corresponding account of the Ministry of Finance and Public Administration, provided it is a housing lease. This deposit will be carried out using the 801 form of deposit confirmation or guarantee in cash, which can be obtained in printed form by means of the personification before the Provincial Directorate of Finance and Public Administrations.

The instructions for completing the 801 model can be obtained from the Provincial Offices of our Ministry of Development.

Once the previous deposit has been made, the interested party must submit to the Provincial Directorate (Urban Rental Leases Section) corresponding to the place where the rented dwelling is located, Request to establish or update deposits already deposited, whose model will be provided in said Provincial Office.

To this request, the following documentation will be attached:

  • Model 801 in which the realization of the deposit of one month of rent in the corresponding account of the Ministry of Finance and Public Administration.
  • Three original copies of the lease.

After examining the submitted documentation, the original contracts presented are processed and two copies are returned, one for the lessor and another for the lessee.

In addition, the document “PAPER OF BONDS” will be issued, which will be necessary to urge the return or modification of the deposited bond. This document will be delivered to the landlord.

Only from this moment in which the “PAPER OF BONDS” is issued can it be understood that the deposit of the deposit has been validly constituted.

As a general rule, the obligor to the constitution of the deposit of the deposit, will be the lessor, with the exception of the contracts of lease of houses with public protection of public promotion, where the obliged to the constitution will be the tenant.

Finally, note that this deposit must be made within fifteen working days from the date of signature of the contract.

However, in case of any doubt that may arise, the corresponding consultations can always be made before the Bonding Service of the corresponding Provincial Development Office.

Modification of the deposit of the deposit

Modification of the deposit of the deposit

As long as the housing lease contract is not extinguished, it may suffer variations throughout the period of validity. These variations can be of a different nature, and since it could not be otherwise, the part of the rent is not excluded from these possible changes. In this sense, either for reasons of updating, or for any other reason, the rent may suffer variations, which directly affects the deposit. In this way, when the rent is updated (which usually translates into an increase of the same, and that can not be realized within the first five years of the contract’s validity), it is also necessary to update the amount of the deposit in the same terms.

For this, the procedure is similar to that of the constitution of the bond. It must be previously registered and by means of the 801 model in the same terms foreseen for the constitution of the deposit, the amount that remains until completing a monthly rent.

Once this deposit is made, the interested party, again, must submit to the Provincial Directorate (Bail Section Urban leases) corresponding to the place where the rented dwelling is located, Request to update deposits already deposited, whose model will be provided in said Provincial Office.

To this request, the following documentation will be attached:

  • Model 801, which shows the realization of the deposit of the amount necessary to complete the amount previously deposited and be equivalent to one month of the current rent. Said income will be made in the corresponding account of the Ministry of Finance and Public Administration.
  • Two original copies of the lease.
  • Bond paper issued.

After the examination of the presented documentation, the original contracts presented and the “PAPER OF BONDS” are renewed and returned to the interested parties.

Refund of the deposit

Refund of the deposit

When the lease ends, a series of checks must be made before proceeding to the return of the deposit.

Being a guarantee of compliance with the obligations of the tenant, the full refund of the deposit will be carried out as long as the apartment is in perfect condition. If leaving the apartment, the owner checks that there have been damages or defects in it will discount the repair costs of the amount of the deposit to be returned. The same will happen if at the end of the rent there are amounts owed.

If everything is in order, and there is no debt in favor of the owner of the house, the deposit must be returned to the tenant one month after the delivery of the keys by the same.

Thus, for this return, the landlord must submit to the Provincial Directorate (Bail Section Urban leases) corresponding to the place where the leased house is located, Request to recover the sureties, whose model will be provided in said Provincial Office.

To this request, the following documentation will be attached:

  • Two original copies of the lease agreement with the procedures of incorporation.
  • Bond paper signed on the back by both parties.
  • Document in which the termination of the contract is collected.

Once this documentation has been submitted, the Provincial Office will send a letter to the interested party informing that the necessary documentation has been sent to the Ministry of Finance and Public Administration so that it may reimburse the amounts deposited as a deposit.

Regulatory Regulation

Regulatory Regulation

  • Law 29/1994, of November 24, on Urban Leases.
  • Order of March 5, 1985, which establishes the procedure for the constitution of bonds for leases and supplies within the scope of the Board of Communities of Castilla-La Mancha.

Bond loans: rate of return and interest calculation

Among the various types of financing existing on the credit market there are also the so-called bond loans , explicitly reserved for public limited companies or limited partnerships : as the word itself says, bond loans are based on bonds, have a medium and long term term, and can not be issued for amounts exceeding the paid-up capital and existing in the last financial statements approved by the company shareholders: this means that the maximum capital payable with the bond loan is proportional to the amounts paid by the shareholders by way of risk capital . At this juncture, we want to look more closely at an aspect of bond issues, namely the rate of return and the calculation of interest .

What are the bonds

What are the bonds

First of all, it is good to remember what the bonds are: these are debt securities issued by the public limited company and purchased by investors, who basically lend their money to the company, receiving in exchange a percentage of interest, called a coupon , which has a quarterly, half-yearly or yearly. Those who buy these securities are called bondholders, who take part in company risk as a function of company creditors, even if they are not involved in the management and decision-making processes within the company itself. It is possible, in some cases, to issue bonds for amounts exceeding those indicated in the approved financial statements, or when:

  • The bonds are secured by a mortgage on socially owned properties up to two thirds of their market value
  • The joint-stock company obtains an authorization from the government authority to exceed the limits on the amount envisaged on the basis of the approved budget
  • The guarantee derives from the existence of registered securities issued or certified by the State with a maturity no earlier than that of the bonds

The repayment date coincides with the expiration of one of the coupons and from this day onwards the accrual of interest ends. The repayment of the loan can be done by randomly extracting the serial numbers of the bonds of repayable bonds: in this case, on the basis of the regulation drawn up, the withdrawal date and the withdrawal date are established, and the numbers drawn are published within 10 days in the Official Gazette, so that the bondholders can learn about them.

Rate of return

Rate of return

One of the aspects that most interests the bondholder is the effective rate of return of his credit: to determine this value are various factors that actually make this type of financing different from other types of loans. These peculiar factors are the value of the nominal rate of the loan, the issue price and the redemption price: for this reason the difference between the amount paid to the bondholders at maturity of the coupon and the issue price is a value subject to withholding tax. tax provided for interest and premiums.

The bonds can also be placed by the same company for shares directly on the market with the indications of the credit institutions from which it is possible to make the payments: in this case the date of payment of the amounts of the obligations coincides with the moment in which it is enjoyed. of these. If the payment is earlier or coincides with the date of use of the bonds, the subscriber must only pay the issue amount, if instead it is later the same is required to pay an additional sum for the accrued interest accrued in the period not covered.

Calculation of interests

Calculation of interests

Finally, let’s see how the amount of interest payable is calculated , for which it is necessary to evaluate the payment dates and the dividend period: if the coupon’s maturity does not coincide with the date of January 1, a passive rate must be established to calculate the portion of interest accrued in the period of time between entitlement and 31 December, while if this maturity is between 1 January and 1 July the accrual of interest is to be considered complete, for which it is possible to calculate the obligations for the part of the net amount reserved for bondholders and the debt for withholding tax from the tax authorities. In the event that the payment is after the date on which the obligation is used, the calculation of the interest is set at the nominal value of the rate for the days of non-payment.

All about bonds

The investment world is divided into three major asset classes: equities, bonds and cash equivalents. Today, We offers you a summary of everything you need to know about bonds.

What is an obligation?

What is an obligation?

Bonds are fixed income securities issued by entities that wish to raise funds. When you buy a bond, you lend money to that issuer. This money is refunded in full at a later date (called the “due date”). In the meantime, it is also possible that the entity regularly pays you interest (called “coupons”). The holder knows the exact amount he will receive if he holds his bonds until maturity, which is why they are qualified as “fixed income” securities.

There are two main types of bond issuers: states, local governments or municipalities and companies. For these entities, bond issues are an alternative source of financing for bank loans.

What are the characteristics of a bond?

What are the characteristics of a bond?

Bonds have different interdependent characteristics that determine their value:

  • The face value is the amount of principal borrowed, which will be repaid in full at maturity. It is often confused with the course of the obligation, but these two concepts are different. The face value is an amount engraved in the marble, while the price can fluctuate over time depending on the supply and demand in the market. If a bond is trading at a price lower than the principal, it is said to have a “haircut”. Conversely, if its price is higher, it is called “premium”.
  • The coupon : the coupon corresponds to the interest rates that the holder will receive at regular intervals as compensation for the amount originally loaned to the issuer. Zero coupon bonds may be issued from time to time. In this case, the issuer offers a discount to the sale and repays the securities at their face value, in order to attract potential buyers.
  • Maturity (maturity) : This is the date on which the issuer must repay the principal to the bondholder. It usually oscillates between one and thirty years, but can sometimes be longer. For example, in 1993, Walt Disney Co. launched a show called “Sleeping Beauty”: with a maturity of one hundred years, the bonds will mature in 2093 and carry an annual coupon of 7.55%.

The price and yield of a bond are inversely correlated, meaning that when one increases, the other falls. In general, the longer the bond’s maturity, the more sensitive it is to price movements.

  • Return on Maturity : This figure takes into account the value of the different coupons and the future price performance of the bond in relation to the original face value redeemed on the maturity date. The price and yield of a bond are inversely correlated, meaning that when one increases, the other falls. In general, the longer the bond’s maturity, the more sensitive it is to price movements.

What are the risks?

What are the risks?

Bonds are often considered less risky than equities. When stock markets are very volatile, investors tend to rush to the relative safety offered by these securities. US Treasuries are generally perceived as “risk free”, as the United States is very unlikely to default on its debt. But this is not the case for all bonds: some can be very risky.

The predominant risk to bondholders is credit risk, which is the risk that the issuer will fail to pay coupons or repay principal at maturity. To allow investors to assess the risks of a bond, credit rating agencies issue ratings to issuers. The purpose of these ratings is to gauge their ability to honor their commitments. The three largest rating agencies are Moody’s, Fitch and Standard and Poor’s.

The predominant risk to bondholders is credit risk, which is the risk that the issuer will fail to pay coupons or repay principal at maturity.

The table below details the rating grids used by these agencies to assess the financial health of issuers:

The debt of issuers rated “AAA” or “Aaa” is considered to combine excellent quality and minimal credit risk. Luxembourg can boast of having this coveted “triple A”.

Bonds rated “Ba1 / BB +” or lower are in the speculative category. The risk of a defect is higher.

Normally, the more a bond is perceived as risky, the higher its yield spread. The spread represents the difference between two returns. For example, bonds issued by a large, financially healthy company tend to have a relatively small spread compared to US Treasuries. On the other hand, the securities of a more modest company whose finances are not in good shape will usually have a larger spread compared to US Treasuries.

Where are the bonds traded?

Where are the bonds traded?

Bonds are traded on the bond markets. When an entity issues bonds to investors to raise funds, these securities are sold on the primary market. Then existing bonds are traded on the secondary market. It is also possible to invest in funds exposed to the bond markets.

In many cases, investors diversify their portfolios by buying different kinds of stocks and bonds, depending on their profile. In general, a defensive (or low risk) portfolio holds a lot of quality bonds. Conversely, riskier portfolios have more shares.

  • Investment
  • Investor profile

The crime of damage

Until not long ago, Article 635 of the Italian Criminal Code punished the CD in general as a criminal offense. damage or rather that behavior that results in destroying, deteriorating, dispersing or making unusable – totally or partially – a movable or immovable property of others or of public utility. More generally, it can be said that they integrated the conduct of damaging all the materially or functionally offensive acts of objects that were not the exclusive property of the agent.

decriminalization

decriminalization

With the legislative decree n. 7/2016, however, our legislator has put in place a massive work of decriminalization which has involved various types of crime, which are no longer criminal offenses but are now punished with simple civil sanctions. These include damage, or rather simple damage.

The aggravated damage, on the other hand, also following the recent reform remained in the area of ​​the criminally relevant.

Simple damage

Simple damage

Therefore, today, the “simple” act of damaging objects that are not the exclusive property of the agent no longer has criminal relevance, but represents a hypothesis of administrative offense.

It is punished with a civil penalty of between 100 euros and 8 thousand euros.

To give some examples, we refer to cases where the object of damage is personal property (such as a mobile phone) or vehicles not parked on the public road or in public parking lots.

We refer, still and merely by way of example, to the luggage and plants of the neighbor.

Aggravated damage

Aggravated damage

As said, however, the hypotheses of aggravated damage remain hypotheses of crime and, therefore, are still criminally relevant. We refer, in particular, to the cases in which the action is committed:

  • with violence or threat to the person;
  • on the occasion of events taking place in a public place or open to the public or of a strike or interruption of a public service or public necessity;
  • on public buildings or buildings intended for public use or worship or on things of historical-artistic interest or on buildings, both under construction and under renovation, or on other things indicated in number 7) of article 625 of the criminal code (existing in offices or public establishments, things subject to seizure or distraint, things exposed to public faith, things intended for public service or public utility, defense or reverence);
  • on works intended for irrigation ;
  • above vine plants, trees, fruiting shrubs, woods, forests, forests, forest nurseries ;
  • on sports equipment and facilities in order to prevent or interrupt the performance of sporting events.

Penalties and procedural aspects

Penalties and procedural aspects

The hypotheses of damage that remain a crime are punished with imprisonment from 6 months to 3 years.

Furthermore, the conditional suspension of the sentence is subject to two alternative conditions:

  • elimination of the harmful or dangerous consequences of the crime
  • provision of unpaid work in favor of the community, if the person convicted does not object, for a fixed period of time not exceeding the duration of the suspended sentence.

Who can commit the crime of damage?

Who can commit the crime of damage?

The damage remains a so-called “common” crime, in the sense that anyone can become an active subject in the relevant case – except, of course, the one who is the sole owner of the good.

Psychological element of the crime

Psychological element of the crime

From the subjective point of view, the general fraud is the psychic element required for the integration of the case in point: it is necessary, that is, that the injurer had, at the time of the commission of the fact, both the conscience and the will to attack the good, and the awareness that this good belonged to others. While the specific purpose of doing harm is not relevant for the purpose of qualifying the fraud (see, on the subject, Criminal Cassation, section II, sentence 13 April 2007, no. 15102).

The Legislator has decided not to punish the conduct harmful to property, carried out as a fault.

Jurisprudence on the crime of damage

Jurisprudence on the crime of damage

Criminal Cassation Section II sentence of 10/23/2014 n. 47705

In terms of damage, it integrates the crime referred to in art. 635 cp the forcing of a lock, as it causes to the thing an irreversible damage – although repairable by man – and a functional and structural modification, not irrelevant even under the economic profile.

Criminal Cassation Section V judgment of 21/05/2014 n. 38574

The crime of damage referred to in art. 635 of the Criminal Code differs from that of defacement or contamination envisaged by art. 639 of the Criminal Code, since the former produces a modification of the thing of others which appreciably decreases its value or even partially prevents its use, thus giving rise to the need for a restoration intervention of the essence and functionality of the thing itself while the second it produces only a temporary and superficial alteration of the “res aliena”, whose original aspect, whatever the expense to be faced, is however easily reintegrated. (Case of alteration of the state of the places in which the SC has deemed immune from censorship the decision of the trial judge who had declared the responsibility of the accused for the crime of damage).

Criminal Cassation Section II sentence of 09/22/2010 n. 37889

The hypothesis of aggravated damage ex art. 635, paragraph 2 no. 3 of the criminal code, in relation to the hypothesis referred to in art. 625, paragraph 1 no. 7 of the Criminal Code (committed on things intended for public use exposed to the public faith), breaking the glass door of a bar in the presence of its owner, as this aggravating circumstance cannot be configured if the thing is kept in a direct and continuous manner by the owner of the well. (The Court also noted that, in this regard, the behavior of the agent who, following a sudden move, also succeeded in damaging the guarded thing, since it must be presumed, unless proved otherwise, that the owner, exercising the custody in a direct and continuous way, both able, using all the precautions and diligence of the case, to prevent the event).

Criminal Cassation Section II sentence of 10/23/2014 n. 47705

In terms of damage, it integrates the crime referred to in art. 635 cp the forcing of a lock, as it causes to the thing an irreversible damage – although repairable by man – and a functional and structural modification, not irrelevant even under the economic profile.

Criminal Cassation Section V judgment of 21/05/2014 n. 38574

The crime of damage referred to in art. 635 of the Criminal Code differs from that of defacement or contamination envisaged by art. 639 of the Criminal Code, since the former produces a modification of the thing of others which appreciably decreases its value or even partially prevents its use, thus giving rise to the need for a restoration intervention of the essence and functionality of the thing itself while the second it produces only a temporary and superficial alteration of the “res aliena”, whose original aspect, whatever the expense to be faced, is however easily reintegrated. (Case of alteration of the state of the places in which the SC has deemed immune from censorship the decision of the trial judge who had declared the responsibility of the accused for the crime of damage).

Criminal Cassation Section II sentence of 09/22/2010 n. 37889

The hypothesis of aggravated damage ex art. 635, paragraph 2 no. 3 of the criminal code, in relation to the hypothesis referred to in art. 625, paragraph 1 no. 7 of the Criminal Code (committed on things intended for public use exposed to the public faith), breaking the glass door of a bar in the presence of its owner, as this aggravating circumstance cannot be configured if the thing is kept in a direct and continuous manner by the owner of the well. (The Court also noted that, in this regard, the behavior of the agent who, following a sudden move, also succeeded in damaging the guarded thing, since it must be presumed, unless proved otherwise, that the owner, exercising the custody in a direct and continuous way, both able, using all the precautions and diligence of the case, to prevent the event).

My Bail Bonds – Kinds of Bonds

They are contracts that guarantee compliance with obligations derived mainly from other contracts, agreements or laws. Through such a contract, a Surety Institution commits itself to a third party (beneficiary) to comply with an obligation, if the principal debtor (or guarantor) does not comply with it.

Unlike Insurance, the Bond is not an insurance subject to risks for uncertain acts statistically measurable, but it is a guarantee that implies that in case you have to face the obligation on behalf of a debtor who did not comply , the Bonding Institution will seek to recover the amount of claim paid to the beneficiary.

 

Administrative

Administrative

They guarantee the fulfillment of general obligations between two parties, which, according to their activity, conclude contracts that must be guaranteed for security and mutual trust. Most of the transactions are issued under this type of bond.

Deposit bond

It guarantees the proper investment and amortization of the advance payment that the contractor or supplier receives, to execute a work or purchase of raw material or equipment, etc.

Compliance bond

Ensures the exact fulfillment of the obligations contained in a contract, order, agreement, etc.

Good quality bond

It guarantees the good execution or quality of the work carried out or referring to equipment or materials supplied in which there appear defects of construction, labor or poor quality of the materials used, well known as hidden defects; the guarantor committing to repair them or to compensate for the damages caused.

Contingent or labor liabilities

This guarantee guarantees the possible liabilities that in labor matters (employer-employee quotas) the contractor and / or constructor in charge will cease to render, with respect to a work assigned by a Beneficiary.

 

Bond of Contest or Llicitation

Bond of Contest or Llicitation

It guarantees that the supplier respects the quoted price, as well as the conditions under which he is presenting his proposal. If not, the surety would pay for it the amount stipulated.

  • Raffle and Raffle Deposit
  • Temporary Import and Export Bond
  • Deposit of Concessions, Permits, Patents and Authorizations

 

Rental Bond

Rental Bond

It is responsible for ensuring the exact payment of monthly income derived from the rental of personal property (machinery or equipment) or real estate (home-room, commercial premises, land, industrial buildings, etc.). As an option, debts may be guaranteed for electricity, water, gas, telephone, etc. and damages to property installations due to improper use.

 

Fiscal Bonds

Fiscal Bond

  • For payment in installments
  • Tax credits

 

International Bail Bonds

Commercial activities between different countries make this type of bond, as a consequence of globalization, an indispensable and increasingly requested requirement. 

The international bond is used to guarantee the obligations between people who, under contract, establish some type of operation such as construction of works, provision of services and purchase-sale of goods, among others.

 

Individual Security

Individual Security

It is for a single employee, in a specific position, generally related to key operations, for example cashiers, drivers, collectors, heads of credit and collection, storekeepers, accountants, salespeople, sales agents, promoters, messengers, watchmen, etc.

 

Bond of Cédula

Bond of Cédula

It is used when it is intended to consolidate only a group of employees, with different positions and different individual amounts.

 

Global Collective Bond

Global Collective Bond

This type covers the entire staff of a company, but can also cover only administrative employees without considering commission agents, sales agents or people with similar functions.

 

Global Bond

Global Bond

It applies to people with limited liability and by strata. In this policy you can group the administrative staff of a company in different levels of responsibility, with amounts allocated for each level.

 

Bail in Excess to the Global

Bail in Excess to the Global

It is issued to cover responsibilities of those employees who, by exception and risk, are different from the general staff of the company.

 

Sole Amount Bond for Sellers

It is special for all sellers or commission agents or people who develop similar activities in a company with a minimum of five people.