completion bond

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Completion Bonding

A loan guarantee that a project will be paid for even if it is abandoned. Producers or publishers will make this guarantee to a bank in order to secure loans to finance their projects. Completion bonding benefits the bank as it guarantees that its loan will be paid. It also benefits the producer or publisher as the loan generally does not become payable until the project is completed, improving his/her accounting position. Finally, it benefits the person who actually develops a given project as the producer or publisher is discouraged from suddenly terminating that project. This form of financing is common to the video game and film industries.

completion bond

A fidelity bond posted by a contractor or developer to guarantee that a particular project will be completed according to plans and specifications,on time,and without any liens incurred as a result of unpaid bills to subcontractors and suppliers;usually required as a condition of performing government work. It provides more coverage than a simple performance bond, which ensures that one party will perform if the other will perform, usually by payment.The completion bond is independent of any underlying contracts and any defenses to those contracts.

References in periodicals archive ?
Jason Zelin of Completion Bond Company added that they are eager to assist producers in obtaining financing by qualifying them with the banks.
Internationally, Film Finances is the dominant player, although Completion Bond Company is planning a series of international joint venture arrangements with foreign-based domestic bonding companies.
A completion bond is the standard means to assure investors that a film will be completed and distributed even if it runs over budget.
the leading provider of completion guarantees for film finance, to see if they would supply the necessary completion bond.
Construction completion bonds are excluded from the additional bonds test.
Such resources include contingency reserves, debt service reserves, capitalized interest, commercial credit lines, and completion bonds.
Valencia brings to Marsh more than 20 years of entertainment risk management experience with a wide range of production-specific exposures, including global filming activities, completion bonds, aircraft, watercraft, stunts, climate, and political risk.
The additional bonds test for the series 2010B bonds, excluding up to $50 million of completion bonds, is a weak 1.
Project completion bonds up to 10% of project costs are not subject to the additional bonds test (ABT).
MJMEUC expects to fund the remaining portion of its cost of the Prairie State project (currently estimated at approximately $65 million) with project completion bonds in 2011.
Through International Film Guarantors (IFG), a Fireman's Fund subsidiary, the company is also able to provide completion bonds.
Unexpected cost increases (approximately $5 million) related to raw materials for the Gateway Project drove MICA's decision to issue completion bonds.