A description of the collateral shall be listed on the undertaking by affidavit.

A description of the collateral shall be listed on the undertaking by affidavit.

• A. TRUE
• B. FALSE
• C. Not specified
• D. Only if required

Answer: (A)

When collateral backs a bond, the security must be clearly identified in the undertaking through a sworn affidavit. Listing a detailed description of the collateral in that affidavit provides the exact property or assets pledged, which gives the court and the surety a concrete, enforceable basis to locate and liquidate the collateral if the principal defaults. This avoids ambiguity and ensures there’s no dispute about what is pledged and what can be claimed if needed. Because providing a sworn, descriptive record of the collateral is required to secure the bond, the statement is true. The other options would imply that this description is optional or not specified, which conflicts with the requirement to have a precise collateral description in the undertaking by affidavit.

When collateral backs a bond, the security must be clearly identified in the undertaking through a sworn affidavit. Listing a detailed description of the collateral in that affidavit provides the exact property or assets pledged, which gives the court and the surety a concrete, enforceable basis to locate and liquidate the collateral if the principal defaults. This avoids ambiguity and ensures there’s no dispute about what is pledged and what can be claimed if needed. Because providing a sworn, descriptive record of the collateral is required to secure the bond, the statement is true. The other options would imply that this description is optional or not specified, which conflicts with the requirement to have a precise collateral description in the undertaking by affidavit.