Water and Wastewater Terms Beginning B

A B C D E F G H I J K L M N O P Q R S T U V W Y Z

bond

(1) A written promise to pay a specified sum of money (called the face value) at a fixed time in the future (called the date of maturity) used by utility agencies to obtain large amounts of money for capital improvements. A bond also carries interest at a fixed rate, payable periodically. A bond usually runs for a longer period of time and requires greater formality than a note. (2) A warranty by an underwriting organization, such as an insurance company, guaranteeing performance or payment by a contractor.