Which term refers to someone who has a financial interest in a bond?

The correct term for someone who has a financial interest in a bond is "obligee." The obligee is the party that is entitled to receive the benefits under the bond agreement, typically a promise of performance or payment by another party, the obligor. This position is central to the structure of bonds, where the obligee is protected by the surety, ensuring that the obligor fulfills their contractual obligations.

In this context, the obligee could be an individual, a corporation, or any entity that benefits from the security of the bond. They have a direct interest in the bond's execution and a vested financial stake in ensuring that the terms of the bond are met.

It's important to note that the term "principal" generally refers to the party responsible for fulfilling the obligations of the bond, while "surety" refers to the entity that guarantees the obligations of the principal to the obligee. The term "beneficiary," while used in various financial contexts, relates more commonly to someone who receives benefits from a trust or policy, rather than a bond specifically. Therefore, the term "obligee" accurately captures the role of the party with a financial interest in the bond.