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The maximum amount that a surety bond company would have to pay out on any given bond. Also referred to as the Penal Sum.

 

For most bonds, this is the dollar amount of the underlying obligation. However, some contract bonds such as bid bonds, and performance bonds may be written for a stated percentage that is less than 100% of the underlying obligation.

Vice President at Axcess Surety
Vice President of Axcess Surety. Surety Bond and financial expert dedicated to helping contractors, businesses and individuals understand and obtain surety bond credit.
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