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The three parties are the principal, who is the person bonded; the obligee , the person who is protected; and the surety, the person or corporation agreeing.
The surety in a construction bond has three options: complete the work itself; retain a contractor to complete the work; or permit the obligee to complete the contract and pay any increased cost of such work.
An obligee may reject the obligor's partial performance, except that the partial performance of its obligations does not harm the obligee's interests.
Each participant with a loan being rolled over should execute an acknowledgment that the acquiring firm will be substituted as the obligee on the loan.
They also appear to assume that joint obligees are each entitled to one-half of the obligation.
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