Different parts of a Surety Bond

[surety]

Surety bonds are three-party agreement

First is the Obligee. They are the entity requiring the Bond.

Second is the principal. The Principal is the person whom will perform the contractual obligations set forth in the Bond Form.


Third part is the Surety Company. They are the entity who will be insuring the principal of the obligations referenced in the Bond Form.

[Question]

Originally Posted by surety

Surety bonds are three-party agreement

First is the Obligee. They are the entity requiring the Bond.

Second is the principal. The Principal is the person whom will perform the contractual obligations set forth in the Bond Form.


Third part is the Surety Company. They are the entity who will be insuring the principal of the obligations referenced in the Bond Form.

So the Principal is the business or the person applying for the surety bond and the obligee is the one requiring it?