In Alice's surety bond contract with PBJ Bonds, PBJ Bonds is considered the:

In a surety bond contract, PBJ Bonds acts as the surety. The surety is the party that guarantees the performance or obligations of another party, known as the principal. In this scenario, Alice would be the principal who is required to fulfill certain obligations, while PBJ Bonds provides the guarantee that if Alice does not meet those obligations, they will be responsible for covering the loss or fulfilling the promise.

By understanding the roles in a surety bond, it's clear why PBJ Bonds is categorized as the surety; they are providing the financial backing to ensure that Alice completes her responsibilities. This structure helps to instill confidence in the obligee, who benefits from the bond and can be assured of compliance. The obligee is the party that requires the bond, typically to protect their interests.

Understanding these roles is crucial for those studying for the Mississippi Adjuster License, as it clearly outlines the responsibilities of each participant in a surety bond arrangement.