A surety bond is a written agreement between three parties: the principal, the obligee and the surety. Below are three of the most popular types of surety bonds in Georgia:
- Performance bond: A Performance bond is a type of surety bond that protects the project owner. This type of bond will assure completion of the project.
- Court bond: The different types of bonds that may be required in court proceedings are termed as court bonds. The bond protects the participants involved in legal matters against any fraudulent activities or payment of judgments. Some common types of court bonds include estate bonds, executor bonds and probate bonds.
- License and permit bond: License bonds and permit bonds are generally required by municipal and various other public bodies to get engaged in a particular activity. The bond assures that the party holding the license will comply with all laws and regulations.
Before applying for any of the surety bonds, it is important to understand how they work.