A surety bond is an unsecured loan designed to protect the obligee. A surety bond has three different parties written into the bond form. Party one is the Obligee meaning obligator; they are the party that is requiring the principal to carrier the bond. The second party of a bond is the principal. The Principal is the party that is required to obtain the bond. The third party involved in the bond is the surety bonding company. The surety company is the entity that will be backing the bond.

How much does a Surety bond cost? The answer to this mysterious question is it depends….
Surety bonds are underwritten similar to a loan.