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A Surety Bond is a three-party agreement whereby the surety guarantees to the obligee (the project owner) that the principal (the contractor) is capable of performing the contract in accordance with the contract documents. Performance of the contract, which is the subject of the bond, determines the rights and obligations of the surety and the obligee.

There are Contract Surety Bonds and Commercial Surety Bonds. 

Contract Surety Bonds include:

A bid bond provides financial assurance to the owner/obligee that the bid has been submitted in good faith, and that the contractor/principal intends to enter into the contract at the bid price and ultimately provide the required performance and payment bonds.

A performance bond protects the owner from non-performance and financial exposures should the contractor default on the contract. It is directly tied to the underlying contract and if the contractor is unable to perform the contract, the surety has responsibilities to the owner and contractor for project completion.

A payment bond, sometimes called a labor and material bond, protects certain subcontractors, laborers, and material suppliers against nonpayment by the contractor. Generally, these claimants may seek recovery directly from the surety company under the payment bond. It also protects the owner from these subcontractors asserting their right to file a lien against the owner’s project for non-payment.

A maintenance bond guarantees against defective workmanship or materials for a specified period.

A subdivision bond guarantee to a city, county, or state that the principal will finance and construct certain public improvements to the infrastructure such as street, sidewalks, curbs, gutters, utility sewer and drainage systems.

Commercial Surety Bonds include:

License and permit bonds, which are required by state law or local regulations in order to obtain a license or permit to engage in a particular business, e.g. contractors, motor vehicle dealers, securities dealers Blue Sky bonds, employment agencies, health spas, grain warehouses, liquor, and sales tax.

Judicial and probate bonds, also referred to as fiduciary bonds, secure the performance on fiduciaries' duties and compliance with court order, e.g. administrators, executors, guardians, trustees of a will, liquidators, receivers, and masters. Judicial proceedings court bonds include injunction, appeal, indemnity to sheriff, mechanic's lien, attachment, replevin, and admiralty.

Public official bonds, which guarantee the performance of duty by a public official, e.g. treasurers, tax collectors, sheriffs, judges, court clerks, and notaries.

Federal (non-contract) bonds are those required by the federal government, e.g. Medicare and Medicaid providers, customs, immigrants, excise, and alcoholic beverage.

Miscellaneous bonds, e.g. lost securities, lease, guarantee payment of utility bills, to guarantee employer contributions for Union fringe benefits, and workers compensation for self-insurers.

EXAMPLES OF SURETY AND FIDELITY BONDS
Adjusters surety bonds	Farm Products Brokers bonds	Photocopiers surety bonds
Appraisers surety bonds	Fidelity Dishonesty bonds	Plumbing Contractors bonds
Auctioneers surety bonds	Games of Chance surety bonds	Postal Contract Station bonds
Auction Company surety bonds	Immigration Consultants	Private School surety bonds
Auto Dealers surety bonds	Immigration Assistant NY	Private Sewage Disposal
Auto Registration Service	Insurance Adjusters bonds	Private Water Systems bonds
Auto Title surety bonds	Insurance Agents surety bonds	Process Servers surety bonds
Billboards surety bonds	Insurance Producers bonds	Public Adjusters surety bonds
Screen Actors Guild bonds	Insurance Brokers surety bonds	Public Officials Fidelity bonds
Care Facility surety bonds	Inventory Service fidelity bonds	Roofing Contractors bonds
Certificate of Title surety bonds	Janitorial Fidelity bonds	Sales Tax surety bonds
Contract surety bonds	Legal Document Assistant	School Bus Drivers bonds
Contractors Bid surety bonds	License bonds (misc)	Secondary School surety bonds
Contractors License bonds	Liquor License & Permit bonds	Tax Preparers bonds
Contract Payment  bonds	Lost Trust Deed surety bonds	Tax Preparers E&O Insurance
Contract Performance bonds	Mortgage Bankers surety bonds	Transportation Broker
Deferred Deposit surety bonds	Mortgage Brokers surety bonds	Truckers Highway surety bonds
Delayed Deposit surety bonds	Motorcycle Dealers bonds	Truckers Permit surety bonds
Dry Cleaners bonds	Notary Public surety bonds	Unlawful Detainer Assistant
Employee Dishonesty bonds	Notary Public E&O Insurance	Utility Deposit surety bonds
Employment Agency bonds	Payday Loan surety bonds	Vehicle Registration Service
ERISA Pension Trust fidelity	Permit Bonds (misc)	Wholesale Auto Dealers bonds
Escrow Agents surety bonds	Pet Sitting Fidelity bonds	Wholesale ATV Dealers bonds
Escrow Company fidelity	Pharmaceutical bonds	Wholesale Motorcycle Dealers