A bond is a contract between an obligor (e.g., a developer), obligee (e.g., an association) and a surety (i.e., a bonding company). A bond provides security to the obligee that the obligor will deliver on a promise to perform. A bond will, typically, be in an amount sufficient to compensate the obligee for the obligor’s failure to deliver on its promise. If the obligor fails to perform, then the obligee has the right to request that the surety pay the obligee an amount up to the value of the bond.

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