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 ?
Basic types of bonds in general usage are: (1) individual bonds, covering a named individual in a stated penalty; (2) name schedule bonds, covering a number of named individuals in the respective amounts set opposite their names; (3) position schedule bonds, covering each of the occupants of positions listed in the schedule in the respective amounts set opposite such positions; and (4) blanket bonds, covering all of the insured's officers and employees with no schedule or list of those covered being necessary and with all new officers and employees becoming bonded automatically, in a blanket penalty that takes two forms, an aggregate penalty bond and a multiple penalty bond.
This is available in three formats: individual bonds, schedule bonds and blanket bonds.