A security bond is used when Master of the High Court requires security where he appoints a person to be a custodian / responsible person for someone else’s assets.
The bond of security protects the estate from any negligent act from the appointed person.
It is a demand bond, so if the security is called up by the Master of the High Court it must be paid immediately.
Road Accident Fund Trust beneficiaries receive a pay out from the RAF, due to the fact that they have been involved in an accident and have possible limited employment opportunities or are minors. These funds are to be protected and a trustee is appointed to do this. To protect the trust against the negligence of the trustee the master requires a bond of security for the amount that was paid to the trust.
A Medical Practitioner who has failed to foresee the possibility of harm being suffered by his patient in circumstances where another reasonable practitioner in the same position would have foreseen the possibility of harm occurring and would have taken the necessary steps to avoid or prevent it, is guilty of Medical Negligence. Where money is paid out into a trust, the trustee will be required to provide a bond of security before appointment.