Illinois Oath and Bond-95 Surety is a bond required by the State of Illinois to do business in the state. It is an agreement between the bond issuer, the principal and the obliged (the state) that the principal will comply with all applicable state laws and regulations. The bond guarantees that the principal will fulfill the terms of the contract and pay all debts or obligations that may be legally due. There are two types of Illinois Oath and Bond-95 Surety: a Surety Bond and a Fidelity Bond. A Surety Bond is a three-party agreement between the principal, the obliged (the state) and the surety. The surety agrees to pay the obliged in the event of a default by the principal. A Fidelity Bond is a two-party agreement between the principal and the surety. The surety agrees to reimburse the principal in the event of a default by the principal.