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14 Cards in this Set
- Front
- Back
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Surety |
state of being sure, certain and secure |
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Suretyship |
the guarantee of performance made by one person or entity for another |
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Surety Bond |
an undertaking by one party (the surety) to become accountable to another party (the obligee) for the performance 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
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Obligee |
the party to whom someone else is obligated |
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Principal |
the person primarily liable |
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Penalty |
the amount of credit given to the principal by the surety or the amount which the surety is prepared to pay in the event the principal defaults |
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Statutory bond |
one that is required by a municipal ordinance, or federal or provincial regulation or statute |
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non-statutory bond |
not required by law but flows from the contrat or agreement between the parties |
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contract bond |
guarantees the fulfillment of certain obligations required under public and private contracts |
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Consent of surety |
A letter assuring the owner that if the principal is the successful bidder, the surety will issue other bonds as are specified to ensure the performance of the contract |
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Working capital |
the amount of funds available to pay continuing business operating expenses until payment is received for work being undertaken by the contractor |
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Net worth |
the amount of money remaining after all assets have been liquidated and all liabilities cleared |
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licence |
issued by a regulatory body such as government in order to set rules and regulations to safeguard the public |
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permit |
fulfills same general function as a licence except that they are usually required as prerequisites to performing special functions incidental to the operation of the business |
