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When surety bonds are issued, they are assumed to carry zero risk for the surety company. The bond outlines the agreement between the principal, the surety company, and the obligee. It does not include language about the principal's reimbursement to the surety. An indemnity agreement is used to transfer risk from one party to another, such as in a surety bond. The indemnitor assumes the risk, while the surety company is absolved of liability.