bond - (1) an insurance arrangement in which an individual or business may be compensated for loss or damage by the failure of another party to complete some act or project promptly or properly. For example, in a construction contract, a completion bond may be used to ensure that the builder will complete the project on time. If the builder fails to do so, the proceeds from the insurance may be used to retain another builder to complete the project. See also completion bond  and performance bond . (2) a form of debt instrument often used for financing public improvements such as schools, airports, and roads. An authorized agency may borrow money through the sale of bonds for an approved purpose, pledging specific or general revenues as repayment. Bonds may be short term (up to 5 years) or long term (up to 40 or 50 years).

© 2004 Bella Vista Publishing Company, Inc.  ISBN 0-9718225-0-6

.
	Copyright Protection:   This real estate web site is created in the United States of America and protected by copyright laws.  Permission should be obtained prior to any reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording or likewise.
.