Maintenance Bond

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Dictionary Says

Definition of 'Maintenance Bond'

A type of surety bond purchased by a contractor that protects the owner of a completed construction project for a specified time period against defects and faults in materials, workmanship and design that could arise later if the project was done incorrectly. A maintenance bond is not technically insurance, but basically functions as an insurance policy on a construction project to make sure a contractor will either correct any defects that arise or that the owner is compensated for those defects. Pricing a maintenance bond is very different from pricing regular coupon paying bonds.
Investopedia Says

Investopedia explains 'Maintenance Bond'

A surety bond is a three-way contract where a third party called the surety guarantees the contractual obligations of one party (the principal) to another party (the obligee) by agreeing to pay a sum to the obligee as compensation if the principal does not fulfill its obligations. The surety assures the obligee that the principal will perform the required tasks. A maintenance bond is structured in such a way.

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Search results for

'Maintenance Bond'

  • Series 7 Study Guide - Portfolio Management - Revenue Bond ...

    http://www.investopedia.com/exam-guide/series-7/portfolio-management/revenue-bond-analysis.asp
    ... Operations and maintenance, Debt Service, Debt Service Reserve and Maintenance Reserve. ...
    sometimes an entity other than the one issuing the bond extends credit ...

  • CFA Level 1 Study Guide - Securities Markets - Buying on Margin ...

    http://www.investopedia.com/exam-guide/cfa-level-1/securities-markets/buying-on-margin-maintenance-margin.asp
    ... Characteristics; 12.6 Short Selling; 12.7 Buying on Margin and Maintenance Margin; ...
    Fixed Income Investments: 14.1 Introduction; 14.2 Bond Features; 14.3 Basic Coupon ...

  • Municipal Bond Tips For The Series 7 Exam

    http://www.investopedia.com/articles/professionaleducation/07/Series_7_municipal.asp
    ... Operations and maintenance expenses take priority. ... Put Provisions, This
    section describes the put provisions (if any) on the bond. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Bond ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/bond-valuation-basics.asp
    ... Characteristics; 12.6 Short Selling; 12.7 Buying on Margin and Maintenance Margin; ...
    Fixed Income Investments: 14.1 Introduction; 14.2 Bond Features; 14.3 Basic Coupon ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Spot Rates ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/spot-rates-bond-valuation.asp
    ... Characteristics; 12.6 Short Selling; 12.7 Buying on Margin and Maintenance Margin; ...
    Fixed Income Investments: 14.1 Introduction; 14.2 Bond Features; 14.3 Basic Coupon ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Bond Value ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/bond-vaue-price.asp
    ... Characteristics; 12.6 Short Selling; 12.7 Buying on Margin and Maintenance Margin; ...
    Fixed Income Investments: 14.1 Introduction; 14.2 Bond Features; 14.3 Basic Coupon ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Bond Features ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/bond-features.asp
    ... Characteristics; 12.6 Short Selling; 12.7 Buying on Margin and Maintenance Margin; ...
    Fixed Income Investments: 14.1 Introduction; 14.2 Bond Features; 14.3 Basic Coupon ...

  • Can I still make money with a couch-potato portfolio?

    http://www.investopedia.com/ask/answers/08/couch-potato-portfolio.asp
    ... rising stock market conditions, the S&P 500 will typically outperform bond investments,
    but ... works for investors who want low cost and little maintenance in a ...

  • Series 7 Study Guide - Customer Accounts - Managing Margin ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/managing-margin-account.asp
    ... Maintenance Margin Maintenance margin is the threshold for keeping an active margin ...
    the current market value, whichever is greater, of each short bond in the ...

  • CFA Level 1 Study Guide - Liabilities - Reporting The Retirement ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/bond-retirement-conversion-reporting.asp
    ... Characteristics; 12.6 Short Selling; 12.7 Buying on Margin and Maintenance Margin; ...
    Fixed Income Investments: 14.1 Introduction; 14.2 Bond Features; 14.3 Basic Coupon ...

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