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Surety bonds are assumed to have zero risk for the surety company issuing them, outlining terms between principal, surety, and obligee. The bond does not typically mention the principal's reimbursement to the surety, but an indemnity agreement transfers risk from one party to another. In a surety bond indemnity agreement, the indemnitor assumes risk, while the indemnity (surety company) is absolved of liability.
