From whom can a surety collect payments?

A surety can collect payments from the principal because the principal is the party who has entered into the bond agreement to fulfill a contractual obligation. The bond serves as a guarantee that the principal will perform their duties according to the terms specified in the contract. If the principal fails to meet these obligations, the surety has the right to seek reimbursement for any claims they pay out to the obligee (the party protected by the bond).

In the context of the bonds, the principal assumes responsibility for the performance of the contract, and any default on their part can lead to financial consequences for the surety, who may then demand payment from the principal to recover those losses. This relationship ensures that the surety can manage its financial exposure and hold the principal accountable for their obligations.

The other parties mentioned, such as the obligee and the surety agent, do not bear the same financial responsibility for the bond's performance as the principal does. The contractor may also be a term used interchangeably with the principal in some contexts, but specifically regarding payment collection by the surety, the principal is the correct answer.