performance bond

(redirected from Bond, Contract)
Also found in: Thesaurus, Financial, Encyclopedia.

performance bond

n
(Banking & Finance) a bond given by a bank to a third party guaranteeing that if a specified customer fails to fulfil all the terms of a specified contract, the bank will be responsible for any loss sustained by the third party
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.performance bond - a bond given to protect the recipient against loss in case the terms of a contract are not filled; a surety company assumes liability for nonperformance
bond certificate, bond - a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal
References in periodicals archive ?
In authorizing the city mayor to enter into a MOA, the ordinance cited Local Government Code which states that 'for efficient, effective and economical governance the purpose of which is the general welfare of the city and its inhabitants pursuant to Section 16 of this code, the city mayor shall represent the city in all its business transaction and sign in its behalf all bond, contracts, and obligations.'