US: (e.g., fidelity bonds) or the failure to perform a specific act (e.g., performance or surety bonds). The principal (i.e., the party paying the bond premium) is also called the obligor (i.e., the party with the obligation to perform). If there is a default, the surety (i.e., the insurer) pays the loss of the third party (the obligee). The obligor must then reimburse the surety for the amount of loss paid.
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MEDICAL,USA: 1. Certificate of debt that contains a promise to pay and issued either on the security of a mortgage, a deed of trust, or on the credit of the issuer. 2. Obligation (fidelity bond) of an insurance company to protect the insured against financial loss caused by dishonesty of a covered employee. It would pay the insured up to the limits of the policy for such a loss. 3. Certificate of ownership of a specified portion of a debt due by the federal government to holders, bearing a fixed rate of interest.
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US: A certificate issued by a government or corporation as evidence of a debt. The issuer of the bond promises to pay the bondholder a specified amount of interest for a specified period and to repay the loan on the expiration (maturity) date.
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A contract between three parties: a principal, a surety, and an obligee. The bond is issued by the surety and promises the obligee financial protection in case the principal fails to perform a duty or is found to be dishonest.
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A document for expressing surety. A bond engages three entities the surety (bonding company) sells the bond to the principal for the purpose of paying the amount the principal will owe to the obligee upon failure of the principal to perform some act or provide some service under agreed terms.
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Three Party Contract guaranteeing that if one person, the Principal Obligator, fails to perform as specified or proves to be dishonest, the person to whom the duty is owed, the Obligee, will be financially protected by the Insurer of the Bond, i.e., the Surety.