Surety Bond

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Surety Bond:

Surety Bond is a three-party agreement by which party one the surety company guarantees the performance of second party the principle to a third party the obligee. 

How Surety Bond Works?
  1. The principal purchases the surety bond to guarantee quality and completion of contracted work.
  2. The obligee is the entity who requires the principal to purchase the bond.
  3. The surety is the entity that issues the bond and financially guarantees the principal’s ability to complete the contracted work.
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