L

License and Permit Bonds: A term used to refer to bonds which are required to obtain a license or permit in any city, county or state. These bonds guarantee whatever the underlying statute, state law, municipal ordinance or regulation requires. They may be required for a number of reasons, for example the payment of certain taxes and fees and providing consumer protection as a condition to granting licenses related to selling real estate or motor vehicles and contracting services.

M

Maintenance Bonds: Bonds that provide for the upkeep of the project for a specified period of time after the project is completed. These bonds guarantee against defective workmanship or materials. These bonds may occasionally include a guarantee of "efficient or successful operation" or other obligations.

Minor: A person who is not of legal majority. In certain situations, a person may be appointed as a guardian of a minor.

Miscellaneous Bonds: A term used to refer to bonds which do not fit any of the other well-recognized categories of surety bonds.

N

Notary Public Bonds: Include bonds that are required by statutes to protect against losses resulting from the improper actions of notaries.

O

Obligee: The person or institution to which a surety guarantees that a principal perform as expected.

Open Penalty: A term used to refer to the unlimited liability of the surety on a particular bond.

Ordinance: A municipal regulation.