Which of the following statements about surety bonds is (are) true? I

Which of the following statements about surety bonds is (are) true?

I. The surety has a legal right to recover a loss payment it made on behalf of a defaulting principal.
II. The obligee is the party who benefits from the bond if the principal fails to perform.
A) I only
B) II only
C) both I and II
D) neither I nor II

ANSWER

Answer: C