Monetary Policy Report Press Release: December 2017 BOX Monetary Policy Report Implications of the electronics technology life-cycle and the rise of the Internet of Things for Asiaâs exports Developments in the unrated bond market and implications for financial stability
What is the difference between a surety bond and a bank guarantee? Surety bonds are typically conditional whereas bank guarantees are on demand. Only the performance risk lies with the surety, where the bank has the financial risk on the construction project.
Surety is a specialized line of insurance where one party agrees to be responsible for the debt or obligation of another party. There are three parties to this agreement: 1  The principal is the party that undertakes the obligation and who is primarily bound on a bond. 2  The surety company guarantees that the obligation will be performed. 3  The obligee is the party who receives the benefit of the bond.