Surety bonds are indentures surrounded by at least three parties. The three parties include an Obligee, which is a party who is the receiver of an obligation. A Principle, who is the most important party who will be executing the contractual requirement and finally, the Surety who reassures the Obligee and the Principle can perform the task. The surety bonds are installments by banks and are also known as Bank Guarantees. Bonds have a cash payout limit of guarantee in the event the Principle evades on his responsibilities to the Obligee. With a surety bond, the Surety agrees to uphold the promises/obligations made by the Principle.