surety bond

surety bond definition - finance
A bond issued by a com-pany on behalf of a person that guarantees the person will fulfill an obligation to a third party. If the person does not perform those duties, the third party is reimbursed through the bond for losses it suffers. Surety bonds may be used in cases where employees manage money or perform some other sensitive duties.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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