In a surety arrangement, the party who benefits from the bond if the bonded party fails to perform is the

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In a surety arrangement, the party who benefits from the bond if the bonded party fails to perform is the obligee. The obligee is the party for whom the bond is issued to guarantee performance or payment by the principal. The surety is the party providing the bond and the principal is the party responsible for performing the obligation that the bond secures. The fidelity is a term used in insurance to refer to coverage for losses resulting from the dishonest acts of an employee or other trusted person.

In a Surety Arrangement, the Party Who Benefits from the Bond