What is the primary difference between a surety and a guaranty?
(Choose from the following options)
1. A guarantee pays only after the obligee tries to obtain restitution from the principal.
2. A surety bond is issued by an insurance company.
3. A guaranty bond is issued on behalf of the obligee to cover the performance of the principal.
4. A surety pays only if the principal's performance fails to comply contractually.
