Which term describes a party who is entitled to the security from a surety in a suretyship?

The term that describes a party who is entitled to the security from a surety in a suretyship is "obligee." In a suretyship agreement, the obligee is the person or entity to whom the obligation is owed. This means that if the principal, who is the party ultimately responsible for fulfilling the obligation, fails to perform, the obligee can seek compensation or performance from the surety, who is the party that guarantees the obligation of the principal.

The obligee has a vested interest in the security provided by the surety because it ensures that they will receive payment or service should the principal default. The surety assumes a financial responsibility to fulfill the obligation if needed, thereby providing security to the obligee. Understanding these roles is crucial for comprehending how suretyship functions within the broader framework of financial and legal obligations.