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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 is one who at the request of an-. other, and for the purpose of securing to him a benefit, becomes responsi-. ble for the performance by the latter of some act in favor of a third per-. son, or hypothecates property as security therefor:'. Except that surety is correctly defined as a person and guar-. anty as a thing, the second definition adds only two phrases.