Includes bid or proposal bonds, performance bonds, payment or labor and material bonds, maintenance bonds and supply bonds. These bonds are required by state or federal law for most public construction projects or by a private developer.
What is the purpose of a surety?
A surety is someone who agrees to supervise an accused person while they’re released into the community on bail waiting for their criminal matter to be resolved in court. Usually this is a friend or relative. It is against the law to accept payment for being a surety.
Who is considered a surety?
Key Takeaways. A surety is a person or party that takes responsibility for the debt, default or other financial responsibilities of another party. A surety is often used in contracts where one party’s financial holdings or well-being are in question and the other party wants a guarantor.
What does surety mean in legal terms?
Someone who assumes direct liability for another’s obligation. Financial creditors may require the debtor to find a surety, who then signs the loan agreement along with the debtor.