what is ment by bond?
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A written and signed promise to pay a certain sum of money on a certain date, or on fulfillment of a specified condition. ... A surety bond is not an insurance policy and, if cashed by the obligee, its amount is recovered by the surety from the obligor. ... Securities: A debt instrument ...
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A three-party contract(variously called bid bond, performance bond, or surety bond) in which one party(the surety, usually a bank or insurance company) gives a guaranty to a contractor's customer (obligee) that the contractor (obligor) will fulfill all the conditions of the contract entered into with the obligee. If the obligor fails to perform according to the terms of the contract, the surety pays a sum (agreed upon in the contract and called liquidated damages) to the customer as compensation.
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