What is the primary action a surety takes in response to a default by the principal?

The primary action a surety takes in response to a default by the principal is to arrange to fulfill the obligation. This reflects the fundamental purpose of a surety bond, which is to provide a guarantee that the principal will meet their contractual obligations. When a default occurs, the surety steps in to ensure that the obligations are fulfilled to protect the interests of the obligee.

This contractual relationship underscores the surety's role as a financial backer and protector, demonstrating their commitment to supporting successful project completion or compliance with contractual terms. Instead of simply forfeiting the bond amount or compensating the obligee directly, which might not adequately address the underlying obligation, the surety works actively to resolve the situation by either finding a suitable solution or fulfilling the requirement themselves.

The other options, while they may seem plausible in the context of a bond, do not align with the primary responsibilities of a surety. Therefore, the surety taking steps to arrange fulfillment of the obligation is the most accurate representation of their actions in the event of a principal’s default.