surety bond

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surety bond

n.
A guarantee issued by a surety agency on behalf of a client, requiring the agency to pay a sum of money to a third party in the event the client fails to fulfill certain obligations.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.surety bond - a bond given to protect the recipient against loss in case the terms of a contract are not filled; a surety company assumes liability for nonperformance
bond certificate, bond - a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal
References in periodicals archive ?
performance bond, surety in the amount of 5% (five percent) of the contract amount, excluding VAT, or of the additional percentage in the cases indicated dall~art.
Where a surety and principal agree to amend bond to add "coverage" for materialman who otherwise would not be covered by terms of bond, surety may have effectively extended coverage to materialman.
00 or more the Performance Bond may be furnished in the following manner: Performance Bond, Surety Bond, Certified Check, Bank Check, Savings Account in both the City & Vendors name or Letter of Credit.