answer:I thought this was a straight-forward and easily answerable question until I looked it up. Here’s what I found on Wikipedia: Commercial, license, or permit bond, usually required by law, are a guarantee from a Surety to a government and its constituents (Obligee) that a company (Principal) will adhere to the provisions of applicable codes and laws that apply to particular activities. The company could be a contractor, a health spa, title company, notary public, etc. For example, an Importer Entry Bonds is required on all commercial shipment of goods entering the commerce of the United States. An Importer Entry Bond is a customs bond posted by an importer to guarantee the payment of import duties and taxes, and to assure compliance with any pertinent law, regulation or instruction. It may be written as either a single transaction or continuous bond (self-renewing). The bond amount for a continuous bond is determined by taking multiples of $10,000 nearest 10% of duties, taxes and fees paid by an importer during the last calendar year. The minimum continuous bond amount is $50,000. To put it simply, it means a bonded person will perform services lawfully.