What do the bonds provide for the borrower and CEF?
Assures both the borrower and CEF that the new construction will be completed all subcontractors will be paid and all utilized materials will be paid in full. In the event that the contractor or a subcontractor fails to complete the project or pay for materials or labor as provided in the contract, the bonding company is responsible for providing monetary restitution so the project can be completed without placing additional financial responsibility on the borrower.
