Through the surety bond service, BBS Bank may extend finance to an individual for developments on a property whose title is held by a third party provided the person whose names appear on the title deed signs a surety bond.
A Surety Bond is a bond issued by an entity (first party) on behalf of a second party, guaranteeing that the second party will fulfill an obligation or series of obligations to a third party. In the event that the obligations are not met by the second party, the third party will recover its losses via the surety bond from the first party.
Loosely translated, it would mean the bank is in a position to accord funding to an individual/company in whose name the deed is not registered e.g. Mrs. John can come apply for a mortgage loan using property registered in the name of Mr. John or Company A can come to apply for a mortgage loan using property registered in the name of Company.
