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.
The website also highlights a blog center called Surety Insider that hosts blog articles on surety topics such as 7 Red Flags for Contract Bonds & Strategic Approach Fixes and 8 Tips to Increase Your Agency's Surety Bond Business.
Proposals must be accompanied by a bond in the amount of five percent (5%) of the proposed contract price, duly executed by the Supplier, as principal, and its surety, guaranteeing the provisioning of contract bonds specified in 1.
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.
Alstom's banks want the state to come up with another solution as contract bonds needed to win new business are running out.
The division is mainly focusing on writing contract bonds for construction companies seeking to guarantee that a project will be completed.
41 billion) in contract bonds -the financial backing it needed to bid for new orders.
Through independent agents and professional surety producers, SureTec specializes in underwriting small-to-midsize contract bonds and commercial surety.
4 billion in contract bonds that allowed it to bid for new business.
CSIA offers other services in addition to contractor's license bonds, including contract bonds (performance, bid and payment bonds) and general liability, workman's compensation and commercial automobile insurance through Skyles Insurance Agency.
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.

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