Tennessee Cost Bonds are surety bonds that protect the public from financial loss in the event that a principal (obliged) fails to fulfill their contractual obligations. They are required by the state of Tennessee for certain professions and activities that require financial security. There are several types of Tennessee Cost Bonds, including: license and permit bonds, auto dealer bonds, public official bonds, court bonds, contractor bonds, and miscellaneous bonds. License and permit bonds guarantee that a business will abide by all applicable rules and regulations when performing work on behalf of the state. Auto dealer bonds ensure that auto dealers will comply with all laws, regulations, and agreements when conducting business with the public. Public official bonds guarantee that officials will act in an honest and ethical manner in their official position. Court bonds guarantee that a court will follow the law when making rulings. Contractor bonds guarantee that a contractor will abide by the laws and regulations of the state when working on a project. Miscellaneous bonds cover any other type of activity that requires a financial guarantee from the obliged.