An entity or person who enters into an agreement with a surety to hold the surety harmless from loss incurred as a result of issuing a contract bond to an applicant who falls just short of acceptability. If the principle defaults, the indemnitor, rather than the surety, assumes the obligation.
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An individual or company who agrees to assume the obligation normally placed on a surety if the person a bond was issued on defaults. This is usually done because the applicant does not qualify as an acceptable risk by the surety’s standards.