surety bond
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 Webster's Finance Dictionary |
surety bond definition - business
surety bond
A contract involving three or more parties in which one of the parties (the surety) agrees to fulfill an obligation or provide monetary compensation to another of the parties (the oblige) in the event the third party (the principal) defaults. Surety bonds are used to guarantee construction agreements, court appearances, and lost stock certificates.
The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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MLA Style
"surety bond." Business. 2009
- Your Dictionary. 5 July 2009
- <www.yourdictionary.com/business/surety-bond>
APA Style
surety bond. (2009). In Business
- Retrieved July 5th, 2009, from www.yourdictionary.com/business/surety-bond
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