Defaulting On An Efficiency Bond Can Have Substantial Monetary Consequences.This Can Result In A Range Of Economic Effects, Consisting Of:
bond rates By-When a guaranty problems a performance bond, it ensures that the principal (the party that purchases the bond) will meet their responsibilities under the bond's terms. If the principal stops working to fulfill these commitments and defaults on the bond, the surety is accountable for covering any losses or damages that result.1. Loss