The posting of security (or bonding) ensures an Engager can meet all of its financial obligations to the Artists it has contracted. An Engager cannot issue contracts to an Artist before posting security with Equity.
Related information can be found in Article 33:00 of the Independent Theatre Agreement.
Generally, the amount required in security is equal to:
An additional amount is required for touring productions.
Equity suggests inserting a buffer amount into your bond calculation. Should projected fees change, a buffer reduces administrative burden for both parties by avoiding a mid-production bond recalculation/increase under urgent timelines.
Some things that might bump the bond requirement up are:
If you have any questions or require more detail, please contact your Equity Business Rep.
Peak Security allows an Engager to bond for an entire season at once. The calculation is based on the 2 consecutive weeks in the season with the highest total Contractual Fees. For the purposes of this calculation, Contractual Fees for a Director, Choreographer, Fight Director, and Intimacy Director should be included in the first week of rehearsal of the Artist’s engagement.
An amount equivalent to the provincial and federal sales taxes, depending on the theatre’s point of origin is also required.
Equity suggests inserting a buffer amount into your bond calculation. Should projected fees change, a buffer reduces administrative burden for both parties by avoiding a mid-season bond recalculation/increase under urgent timelines.
Engagers who have produced at least 3 seasons under the ITA (and don’t have a history of unpaid balances with Equity) are permitted to use the Peak Security method of calculating a bond. The full season’s calculation and summary is required to approve a Peak Security bond. Reach out to your Business Rep for a template.
It’s best practice to have appropriate security calculated and in place before beginning negotiations with Artists. Once Artist negotiations are complete, a ITA contract must be released to the Artist within 10 business days. Having an adequate bond in place relieves pressures to meet this ITA required timeline.
While it’s possible to provide an updated calculation and top up your bond, urgent timelines may apply and contract release may be delayed.
Remittance details and a breakdown must be sent to engagerAR@caea.com to ensure monies are allocated to the correct Artist. Remittances submitted without supporting documentation will not be applied to an invoice and may incur interest penalties.
Bond payments that include other invoice monies can be made to bonding@caea.com if supporting documentation is included.
Contact your Business Rep or email engagerAR@caea.com to request Equity’s banking details.
Please note: Remittances cannot be made at RBC using branch-generated deposit slips.
The Engager must contact Equity to formally request the release of a bond by emailing bonding@caea.com and their Business Rep.
Before the bond can be released, all of the following steps must be completed:
Have questions or need more information?
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