What is a surety bond?

A Surety Bond is a three party contract between:

• The principal - the primary party who will be performing a contractual obligation
• The obligee - the party who is the recipient of the obligation, and
• The surety - who ensures that the principal’s obligations will be performed.

Through this agreement, the surety agrees to uphold - for the benefit of the obligee - the contractual promises (obligations) made by the principal should the principal fail to uphold its promises to the obligee.