A New Jersey Refunding Bond and Release is a type of surety bond which guarantees the performance of a refund obligation. This bond is issued to protect the state of New Jersey from potential losses arising from the failure of the obligatory to fulfill its refund obligations, such as sales tax refunds and other refunds required by state or federal law. The bond also releases the obligatory from any liability that may arise from the refund obligation. There are two types of New Jersey Refunding Bond and Release: a single-year bond and a multi-year bond. The single-year bond is issued for a single year and covers a single refund obligation, while a multi-year bond covers multiple refund obligations over a period of years. Both types of bonds require the obligatory to provide a surety company with a financial guarantee to cover the refund obligation.