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What is a Surety Bond Company? A Surety Bond Company (also called a surety, surety company or bonding company) is the party of the surety bond that takes on the risk and is responsible for paying the surety bond obligee in the case of a default by the surety bond principal.
A surety bond is a contract in which a. surety company promises the State of. California that the contractor will comply. with the state Contractors License Law. (B&P Code Section 7000) Generally, the contractorâs obligation. is to avoid committing violations of. Contractors License Law that are grounds.