The obligee can be a state, local or federal government agency, a business entity or an individual, any of whom are contracting a job or project. This is the case with many contract bonds where the obligee is contracting a construction project, a service agreement or some other type of project where the potential for loss due to principal failure exists.
The obligee can also be the general public, such as it is with many license and permit bonds. These bonds may be required for the principal to obtain and/or maintain licensure. These bonds are typically put in place to provide protection for a portion of the general public that interacts with the principal in the normal course of business. (e.g.; An auto dealer bond is in place to protect customers and other parties with a potential interest in the vehicles being sold. The auto dealer's obligation is to the public.) In instances where the general public is the obligee, the government agency or the state where the bond is in force is usually referenced on the bond form as the obligee.