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COMPLETION BOND

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A Completion Bond is a financial instrument that insures that projects of all sorts are completed, even if the owner or borrower runs out of available funds. Completion Bonds are a common tool used to secure a mortgage for a major building project. As part of the loan/financing agreement, both the mortgagor and the mortgagee are protected in the event of financial reversals. The bond ensures that the building will be finished to a point whereby the asset can be sold and, at minimum, the investment amount recouped from the venture.

 

Completion Bonds are also well known in the world of entertainment. Because of the high cost associated with producing a motion picture, a Completion Bond help protects investors, even in the event the unforeseen occurs, the resources will be available to complete filming, editing and the release of the production.

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