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Reference

Glossary

Shared vocabulary for reading wording records and underwriter cards.

Penal sum
The maximum amount of the surety’s liability stated on the bond.
Obligee
The party protected by / requiring the bond — often a government agency.
Principal
The bonded party that must perform or comply.
Surety
The licensed company issuing the bond.
Indemnity agreement
Contract under which the principal (and often indemnitors) repay the surety for losses and expenses.
Continuation certificate
Document extending or continuing a bond for a renewal period when the obligee accepts that form.
ILOC
Irrevocable letter of credit — a bank instrument sometimes accepted instead of a surety bond.
License & permit bond
Bond required to obtain or keep a licence or permit.
Admitted surety
Surety authorized to write business in a given jurisdiction.
Form number / edition
Obligee’s published form identifier and version date.