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 ?
When it comes to requiring surety bonds for financing, contract bonds for payment and performance are about 90 percent of what is involved, Inscho says.
Additionally, 2008 series A proceeds will be applied toward the refinancing of the outstanding series 2002 B-1 and B-2 state contract bonds, which were issued in variable rate mode, and toward a $13.
These include support to banks issuing advance payment, progress payment or other contract bonds in relation to UK exports and for working capital support.
The deal also involved state backing for contract bonds, seen as essential to avoid the collapse of the firm, which employs 110,000 people.
Through independent agents and professional surety producers, SureTec specializes in underwriting small-to-midsize contract bonds and commercial surety.
Contract notice: Procurement of contract bonds and marketing material.
4 billion in contract bonds that allowed it to bid for new business.
In addition, Fitch affirms the 'AA-' rating on outstanding ESDC service contract bonds.
Paribas analyst Mr Darren Shaw said the announcement left unresolved the crucial issue of contract bonds issued by the construction side of Tarmac's operations and guaranteed by Tarmac plc.
Among the above mentioned surety programs South Coast Surety brought on line are; a number of "alternative bad credit" bonding plans, in house underwriting for commercial and contract bonds and an Instant Issue California Contractor License Bond application.
NEW YORK -- Fitch Ratings assigns an 'A+' rating to the New York State Thruway Authority's $521,685,000 local highway and bridge service contract bonds, series 2009, scheduled to be sold the week of Sept.
Fitch also affirms the rating on outstanding State of New York (the state) service contract bonds.

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