S

SBA: An acronym for the Small Business Administration. The SBA has a program to help small and minority owned contracting businesses obtain surety bonds.

Supply Bonds: Bonds which guarantee performance of a contract to furnish supplies or materials. In the event of a default by the supplier, the surety indemnifies the purchaser of the supplies against the resulting loss.

Surety: A person or institution which guarantees the acts of another.

Surety Bonds: Surety Bonds are three-party agreements in which the issuer of the bond (the surety) joins with the second party (the principal) in guaranteeing to a third party (the obligee) the fulfillment of an obligation on the part of the principal. An obligee is the party (person, corporation or government agency) to whom a bond is given. The obligee is also the party protected by the bond against loss.

Surety Industry: The surety industry is composed of contract surety business and commercial surety business. The products comprising each are sold through the same type of distribution system - agents and brokers.

T

Treasury Listing: A financial rating published by the federal government that lists the maximum size of federal bond a surety is allowed to write.

Trustee: A trustee is a person named to manage a business' assets and work with the business' creditors.