What is a Completion Bond?
The completion bond is an important financial device that helps to insure that projects of all sorts are completed even in the event that the owner or borrower runs out of available funds. Completion bonds are common financial tools in a number of different investment and financial ventures, ranging from mortgages for major building projects to the production of major motion pictures. A completion bond is a fairly common tool when it comes to securing a mortgage for a major building project. As part of the loan agreement for the financing, both the mortgagor and the mortgagee are protected in the event of financial reversals. The bond will make sure that the building will be finished to a point that the asset can be sold and at least the investment amount recouped from the venture. Within the perimeters of this application, a completion bond means there is no partially erected shell of a building left standing with no prospects of completion, and no one left with ownership of property
