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Home > FAQ's > What is a surety bond?

What is a surety bond?

December 3, 2015 by Scott Ellis

A bond is a financial guarantee. It is a third party guarantee that an entity (i.e. – the promotion sponsor) will fulfill their obligations. The bond is a three party agreement between the Principal (the promotion sponsor), the Oblige (the beneficiary on the bond – i.e. the state of FL or NY) and the Surety Company (the third party guarantor issuing the bond ). A bond is to protect the consumers from promotion sponsors who fail to fulfill the prizes of a sweepstakes as indicated in the sponsor’s official rules.