A surety bond is a three-party contract between a principal, obligee and a surety. Surety bonds also are regulated by state insurance departments. The principal has an obligation to the obligee to ...

Surety bonds are an agreement involving a principal, an obligee and a surety company that issues the bond for a fee. In most cases, the obligee accepts a bid or application submitted by the principal.

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...