P

Payment Bonds: Payment bonds guarantee payment of the contractor's obligation under the contract for subcontractors, laborers and materials suppliers associated with the project. Since liens may not be placed on public jobs, the payment bond may be the only protection for those supplying labor or materials to a public job.

Penalty: A term used to refer to the monetary size or limit of a bond.

Pension: A fixed sum of money regularly paid to a person.

Performance Bonds: Performance bonds guarantee performance of the terms of a contract. These bonds frequently incorporate payment bond (labor and materials) and maintenance bond liability. This protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.

Plaintiff: The person or institution that brings an action in a court of law.

Plaintiff Bonds: Plaintiff bonds are required of a plaintiff in an action of law. They generally guarantee damages to the defendant caused by the plaintiff's legal action, should the court decide for the plaintiff.

Position Schedule Bonds: A type of fidelity or public official bond which lists specific positions and their corresponding penalty amounts. Position schedule bonds use one bond but attach a schedule of positions to be bonded. Each name will list specific dollar amounts for which that individual is being bonded. This type of bond may be used to bond certain positions that have a high amount of turnover. Using a position instead of a name will reduce the paperwork involved year-to-year.

Premium: A sum of money paid as consideration for a bond.

Principal: The individual required to be bonded by the obligee.

Public Official Bonds: A type of bond that guarantees a public official will act with honesty and/or faithful performance. These bonds are required by statutes and ordinances.

Public Official: One who holds public office.

R

Rates: The amount of money per thousand dollars (or percentage) used to determine the bond premium.

Reclamation Bonds: A bond which guarantees that an institution will restore land that it has mined or otherwise altered to its original condition.

Replevin: An action of a law used to recover specific personal property.