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 ?
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.
court in Cologne upheld a lower court decision awarding Dirka some $6 million in damages after ruling that Cologne-based insurance group Gerling Allgemeine Versicherung wrongly withdrew its completion bond, killing the production.
In 1990 he became chief executive of First Australian Completion Bond Co.
The borrower is absolutely and unconditionally required to pay loan payments (as defined in the loan agreement) directly to the collateral agent, as assignee of the Issuer, sufficient to pay when due debt service (consisting of principal, premium, if any, redemption price, and interest) on the bonds and any completion bonds or additional bonds.
Market Detail: The ProSure Group's (www.ProSureGroup.com) coverage for construction bonds can include payment and performance bonds, bid bonds, maintenance bonds, supply bonds, subdivision bonds, site improvement bonds, completion bonds, right of way bonds, service contract bonds, and contractor license bonds.
His topics include training and background, the responsibility of a safe set, how to find and hire a stunt coordinator, completion bonds, falls, precision driving, ethical responsibilities of a director, swords and knives, horses and livestock, and sports.
To protect their investments, independent films depend on completion bonds, while studios rely on independent research companies to conduct polls before a film opens.
It offers ancillary support services for projects, such as completion bonds and collection accounts, or other aspects related to its solid legal system.
There have also been problems getting Chinese helmers and producers to work with completion bonds, even as the market gets more sophisticated and the size of the budgets continues to rise.
For anyone planning a co-production in China, its legal environment is a lot more sophisticated than you might think, says Los Angeles entertainment attorney Robert Darwell, and an expanding business means exotic concepts like completion bonds may become more common.
studio, we also offer additional services like completion bonds, cash flow, budgeting and world sales," Rohnke says.