What does the obligee do in a Surety Bond?

In the context of a Surety Bond, the obligee is the party that is the recipient of the obligation. The primary role of the obligee is to ensure that the principal adheres to the agreements or obligations outlined in the bond. In essence, the obligee relies on the surety to guarantee that the principal will fulfill its contractual commitments. If the principal fails to meet these obligations, the surety is responsible for compensating the obligee up to the bond's limit. This structure protects the obligee from financial loss resulting from the principal's non-compliance and underscores the supportive role that the surety plays in the transaction.

The options that describe the roles of the other parties involved either misinterpret the functions within the bond framework or confuse the responsibilities associated with it.