What is "surety bond"

n. 1 (context legal English): A bond issued by one party, the surety, guaranteeing that he will perform certain acts promised by another or pay a stipulated sum, up to the bond limit, in lieu of performance, should the principle fail to perform. 2 (context legal English): In a criminal case, the surety (or bail) bond assures the appearance of the defendant or the repayment of bail forfeited upon the defendant's failure to appear in court.

n. 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 [syn: performance bond]

A surety bond or surety is a promise by a surety or guarantor to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal's failure to meet the obligation. Posting bail for people accused of crimes in exchange for freedom is common in the United States, but uncommon in the rest of the world.