Definition of performance bond in English:

performance bond

Line breaks: per¦form|ance bond

noun

  • A bond issued by a bank or other financial institution, guaranteeing the fulfilment of a particular contract.
    More example sentences
    • Examples of this were inserting into the requirements for the performance bond and guarantee the requirement that they be executed at the time of entry into the contract.
    • By way of illustration, take the case in which the customer is under an obligation to reimburse to the bank any amount that may be demanded by the beneficiary of a performance bond.
    • I start with the commercial purpose of a performance bond.

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