A contractor's surety bond of $15,000 covers a project where they owe $8,500 to suppliers and $12,000 to subcontractors. What is the maximum the bond will pay out?
Correct Answer
A) $15,000
The surety bond maximum payout is limited to the bond amount of $15,000, regardless of total claims exceeding that amount.
Why This Is the Correct Answer
The surety bond maximum payout is limited to the bond amount of $15,000, regardless of total claims exceeding that amount.
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