Depository bond

This bond gives a guarantee payment to the depositor in agreement to the terms and condition of contract with the bank. This depository bond is exclusively developed for the depositors for the financial use of the institution. They guarantee the customers about the deposits and withdrawals of cash. Now it became a negligible line of surety business. The FDIC i.e. federal deposit Insurance Corporation guarantees payment of bank deposits. The public administrator becomes liable for the failure or insolvency of the bank to return back the deposit to the public. Generally, statute gives a designation to the depositories of public funds and furnishes the collateral security to such depositary.