WHO ARE THE PARTIES TO A SURETY BOND?
There are always at least three parties to a surety bond: 1. The Principal This is you, your company or institution – the party that gets bonded. You undertake to perform an obligation that is specified in your bond. The principal in a contract bond is the contractor. It is the public official in a public official bond, the one who gets licensed in a license bond, the guardian in a guardianship bond, and so on. Obligor is another word for principal. 2. The Obligee This is the beneficiary, the party that requires you to get bonded. It might be a person, or an entity such as a company, municipality, or government agency. The obligee receives the bond and its benefit, protection against loss. The surety company compensates it if you fail to fulfill your obligation. 3. The Surety This is the party that issues the bond, usually a surety bond company. It guarantees that a specific obligation will be met. The surety is financially obligated to the obligee in the event that you do not meet you