Who is the Surety Bond Principal?

The Surety Bond Principal is the party of a surety bond who is providing a financial guarantee to the obligee that they will do or not do a specific thing.
For example, with license and permit surety bonds the principal is typically the party applying for a specific license or permit required to operate their business, such as a mortgage broker, insurance agent, auto dealer, contractor or health club owner. The obligee is the party granting that license or permit to the principal. The bond is the financial agreement that the principal will operate their business according to the laws and regulations for that particular industry within that state.