Is it possible for a Surety Bond to have an indefinite duration?

A Surety Bond must have a specified term or duration, making it essential for parties involved to understand the length of coverage provided. This is critical because the bond guarantees certain obligations for a defined period, which helps in managing risk and expectations for the obligee (the party protected by the bond).

The specified term allows stakeholders to assess the bond's effectiveness and ensures that the surety (the party providing the bond) is clear about its commitments. Without a defined period, assessments of risk, compliance, and renewal processes would become convoluted and could lead to disputes regarding the bond's validity and enforceability.

Having a specified term also facilitates financial planning and investment decisions for all parties involved, as they can predict when the bond will expire and if it needs to be renewed or replaced.