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Posted On: 01/13/2022 5:29:29 PM
Post# of 153963
nmbr1stckpckr has me on ignore so he may not learn from this post, but for others, while one doesn't generally have to put up the entire amount of a bond, they often put up a percentage and then back the rest with collateral.
For example, a bond company is not going to have you pay 10% of a $6.5mm bond ($650,000) and then just hope you can come up with the rest if there is a default. They want proof of some kind that you are good for it, such as the mortgage on a house. In CYDY's case, they may have to put up the full amount if the bond company is not satisfied that CYDY has enough assets should there be a default.
I don't recall if the bond for CYDY is a collateral bond or if it had to be cash in full. Anyone remember?
For example, a bond company is not going to have you pay 10% of a $6.5mm bond ($650,000) and then just hope you can come up with the rest if there is a default. They want proof of some kind that you are good for it, such as the mortgage on a house. In CYDY's case, they may have to put up the full amount if the bond company is not satisfied that CYDY has enough assets should there be a default.
I don't recall if the bond for CYDY is a collateral bond or if it had to be cash in full. Anyone remember?
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