4617753
| Question | Answer |
| Surety | State of being sure, certain, and secure |
| Suretyrship | The guarantee of performance made by one person or entity for another |
| Surety Bond | An undertaking by one party(the surety) to become accountable to another party (the obligee) for the performance of an obligation or undertaking by a third party (the principal). It is a promise to provide credit, if and when needed, to ensure the faithful performance of an obligation |
| Obligee | The party to whom someone else is obligated under a contract or the party to whom the bond is given |
| Principal | The person primarily liable |
| Penalty | Amount of credit given to the principal by the surety or Amount which the surety is prepared to pay in the event the principal should default |
| Statutory Bond | One the is required by municipal ordinance, or federal or provincial regulation or statute |
| Non-Statutory Bond | Not required by law but flows from the contract or agreement between the parties |
| Consent of Surety | A letter assuring the owner that if the principal is the successful bidder, the surety will issue such other bonds as are specified to ensure the performance of the contract |
| Working Capital | The amount of funds available to pay continuing business operating expenses until payment is received for work being undertaken by the contractor |
| Net Worth | The amount of money remaining after all assets have been liquidated and all liabilities cleared |
| License | Issued by a regulatory body such as government in order to set rules to safeguard the public |
| Permit | Fulfils same general function as a license, except that they are usually required as prerequisites to performing special functions incidental to the operation of the business |
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