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Surety bond

Definitions:

Noun

performance bond surety bond

Definition: 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

Definition: 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.

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