Surety Information Office
What is a surety bond?
A surety bond is a written agreement where one party, the surety, obligates itself to a second party, the obligee, to answer for the default of a third party, the principal. There are two categories of surety bonds:
- Contract Surety Bonds provide financial security and construction assurance on building and construction projects by assuring the project owner (obligee) that the contractor (principal) will perform the work and pay certain subcontractors, laborers, and material suppliers. For more information on Contract Surety Bonds, click here.
- Commercial Surety Bonds guarantee performance by the principal of the obligation or undertaking described in the bond.
Statement by NASBP and SFAA concerning the First Sealord Surety Liquidation
The Surety Industry Remains Strong, Well Regulated, and Committed to the Financial Strength and Security of Surety Bonds. Click here to read.
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