Surety Bond

Surety Bond in International Trade

Meaning of Surety Bond, according to the Dictionary of International Trade (Global Negotiator): A surety bond is a guaranty, usually issued by an insurance or surety company, that a particular party will perform according to a contract. In order to collect payment under such a bond, the beneficiary normally must prove actual default on the part of the counterparty, by furnishing a court judgment, arbitral award or official certificate. See bid bond; guaranty; performance bond.