Monetary Policy Report Press Release: December 2017 BOX Monetary Policy Report Implications of the electronics technology life-cycle and the rise of the Internet of Things for Asiaâs exports Developments in the unrated bond market and implications for financial stability
What is the difference between a surety bond and a bank guarantee? Surety bonds are typically conditional whereas bank guarantees are on demand. Only the performance risk lies with the surety, where the bank has the financial risk on the construction project.
It is in this sense that a surety bond is similar to a form of credit extended to the principal by the surety. Three parties involved in a surety guarantee: 1  PRINCIPAL: Person required to post bond. 2  OBLIGEE: Government entity or person requiring principal to be bonded.  SURETY: Provides financial guarantee to obligee on behalf of principal.