Completion Bond

A financial contract that insures a given project will be completed even if the producer runs out of money, or any measure of financial or other impediment occurs during the production of the project. Completion bonds are used in many industries, including major films and construction projects.

They may be part of a mortgage financing deal, and serve to protect both the mortgagor and mortgagee. A third party financier, a completion guarantor company, is typically brought in to provide the financial backstop in the event that original financing is insufficient to complete the project. Also known as a completion guarantee.

Completion bonds are often standard pre-project material for any large construction project or complex project involving large sums of money and/or multiple investors. They are a longstanding tradition in the entertainment business, where many variables can come into play which may affect the completion of a large movie project.

A third party guarantor will assess the risk to the projects completion and collect a premium for insuring the particular risks to a given project being completed on time, and on budget. Investors become much more likely to get involved, knowing that the project will be completed enough to be sold so they can recoup their investment.


Investment dictionary. . 2012.

Look at other dictionaries:

  • completion bond — ➔ bond * * * completion bond UK US noun [C] ► INSURANCE a promise by an insurance company to the person or financial organization financing a project that it will provide the money needed to complete the project, even if something unexpected… …   Financial and business terms

  • completion bond — see bond 1a Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Completion Bond — F/A/V An insurance guarantee that principal photography on a given film will be completed. It indemnifies a production against the unforeseen costs of any type, whether or not they result from problems which are covered by other types of… …   Audio and video glossary

  • Completion bond — PP An insurance policy that guarantees a film will be completed and delivered with the agreed script, cast and budget …   Audio and video glossary

  • bond — 1 n 1 a: a usu. formal written agreement by which a person undertakes to perform a certain act (as appear in court or fulfill the obligations of a contract) or abstain from performing an act (as committing a crime) with the condition that failure …   Law dictionary

  • bond — A certificate or evidence of a debt on which the issuing company or governmental body promises to pay the bondholders a specified amount of interest for a specified length of time, and to repay the loan on the expiration date. A long term debt… …   Black's law dictionary

  • bond — A certificate or evidence of a debt on which the issuing company or governmental body promises to pay the bondholders a specified amount of interest for a specified length of time, and to repay the loan on the expiration date. A long term debt… …   Black's law dictionary

  • Completion guarantee — A completion guarantee (sometimes referred to as a completion bond) is a form of insurance offered by a completion guarantor company (in return for a percentage fee based on the budget) that is often used in independently financed films to… …   Wikipedia

  • Bond — Bond, bonds, bonded, and bonding may refer to:Fiduciary bonds*Bond (finance), in finance, a debt security, issued by Issuer **Government bond, a bond issued by a national government ***Government bond register, a register of bonds issued by a… …   Wikipedia

  • bond — payment by a tenant to a landlord before the tenant takes over the premises and from which the landlord may be able to deduct arrears of rent or the cost of rectifying damage. Glossary of Business Terms (1) A debt security. Sometimes used only in …   Financial and business terms

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