Which party is the obligee in a surety bond?

In the context of a surety bond, the obligee is the party that benefits from the bond. This party is often a government entity or an individual that requires the principal (the party that purchases the bond) to perform a specified obligation or duty. The surety bond serves as a guarantee that the principal will fulfill their commitments, and if they fail to do so, the obligee can make a claim on the bond for compensation.

Understanding this relationship is crucial, as it highlights the role of the obligee in ensuring compliance and protection against potential loss or damage arising from the principal's failure to complete contracted obligations. The other options pertain to different aspects of the surety bond arrangement, but they do not capture the essence of who the obligee is in this context.