what is an assurity bond?

Question

relates to a leasee/lessor agreement

Answer 1

Surety... Obligation to pay the debt or to respond to the default of another. It is a 3 party contract---Continuous contract---Must be in writting---Cannot be cancelled---Fully recoverable.
The surety does not expect losses.
A bond is a guarantee by the surety that the principal can and will honestly and faithfully perform the task.
A surety company will investigate the principal before issuing a bond. The principal must have: character--Capability--Capital to do the job. Much more is said about surety bonds.