a commercial lease agreement bond secures the lease payments to the obligee.Means a demand for, or an assertion of a right to, civil compensation or civil damages or an intimation of an intention to seek such compensation or damages. The obligation being secured is the future payments due in accordance with the payment schedule or plan, e.g. The meaning of PRINCIPAL is most important, consequential, or influential : chief.
The obligation being secured by the bond is the principal's adherence to applicable laws, rules and regulations. A principal is usually the largestor onlyinvestor or owner of a business. (PER STIRPES definition: If any beneficiary pre-deceases the Insured and leaves children, by birth or legal adoption, who survive the Insured, such children of the beneficiary shall receive in equal portions the share of the proceeds the beneficiary would have received if living.
Commercial License and Permit bonds - The principal is typically the business or individual seeking a license or permit. 07/17) Insurance products from the Principal Financial Group.
The obligation to be performed by the principal varies based on the type of bond:
When the principal fails to meet the obligation, the potential for a claim on the bond arises. The risk associated is based on the principal's ability to perform the required obligation. The principal, with regard to a surety bond, is the person or party that is required to perform the obligation in a surety bond agreement.