A surety bond is a three party agreement. The participants in a surety bond are:
1. The principal
2. The obligee
3. The obligor
The principal is the person or entity that signs (you) for the bond. The obligee is the person or entity that requires the bond. This could be a person, business or government body. The obligor is the surety insurance company.
In most instances a surety bond is purchased (or required) to protect a person or entity from loss.