Surety Bonds 101 - The Surety Company & The Surety Bond

  • The Surety is a neutral 3rd party guarantor, providing financial assurance to the Obligee that the Principal will comply with all terms, complete a project according to the underlying contract or agreement, pay all required taxes, fines, wages, suppliers, laborers, or other bills in accordance with an underlying contract or statute of a state, county, city, town, township, or municipality.
  • The Surety “extends” credit on the Principals behalf to the Obligee; based upon the credit worthiness and financial worthiness of the Principal