Surety Bonds

Contract, Non-Contract & Misc. Bonds:
Surety bonds guarantee that specific obligations will be fulfilled. The obligation may involve meeting a contractual commitment, paying a debt, or performing certain duties. Each bond is a written contract between three parties. Two of the parties obligate themselves to meet a commitment to the third party.

Principal: The party who has agreed to fulfill the obligation (the subject of the bond).

Obligee: The party for whose benefit the bond is written. If principal defaults on the obligation, damages are payable to the obligee.

Surety: The surety providing the bond for a fee. The surety joins with the principal in guaranteeing fulfillment of the obligation, and agrees to pay damages if the principal defaults.

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