Definition of Continuous bond:
Guarantee or performance bond that rolls over every year to remain in force over the life of a contract or indefinitely (such as a customs bond).
A continuous bond is a financial guarantee commonly used in international trade that renews automatically until it is canceled. Continuous bonds do not expire as long as the client makes the required payment for each renewal.
This can be contrasted with traditional (term) bonds that feature an expiration or maturity date.
How to use Continuous bond in a sentence?
- The $50,000 continuous import bond is the most common instance found in the United States, which requires up to 10 days to be put in place.
- Continuous bonds are financial agreements with legally binding terms that renew automatically for an unspecified period of time.
- Continuous bonds are often seen in international trade and commerce, covering ongoing shipments received at ports of entry.
Meaning of Continuous bond & Continuous bond Definition