The Bond serves as an additional security for the repayment of the loan and an agreement of the borrower to indemnify the lender. It binds all those who sign the note and loan, along with their heirs, executors and administrators to comply with all requirements. The bond is also referred to as a completion bond. It serves as a guarantee by the borrowers to complete the construction project.
*The section headings and summaries are for convenience only and are not to be used to interpret or define the terms of this Security Instrument.