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A surety bond serves as a financial guarantee that a contractor will fulfill their obligations outlined in a contract. When a contractor defaults, the surety bond steps in to mitigate the losses suffered by the project owner. The surety is typically responsible for either completing the project, compensating the owner for any financial losses, or hiring another contractor to finish the work.

Providing additional funding is not typically a role of the surety bond; instead, it secures the completion of the project or covers financial damages. Likewise, completing the project and ensuring payment for damages are direct functions of the bond in the case of default.

However, canceling the project is not within the purview of what a surety bond is designed to do. The bond does not have the authority to terminate a project; rather, it focuses on ensuring that the obligations are met or compensating for nonperformance. Thus, it’s clear that the cancellation of a project falls outside the intended purpose of a surety bond.