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The surety is the guarantee of the debts of one party by another A surety is an organization or person that assumes the responsibility of paying the debt in case the debtor policy defaults or is unable to make the payments The party that guarantees the debt is referred to as the surety or as the guarantor.
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If the principal breaks those terms the harmed obligee can make a claim on the surety bond to recover losses incurred The surety company then has the right to reimbursement from the principal in the case of a paid loss or claim.
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