Business and Personal Finance Dictionary

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• BONDING
  
  1. Either the process of obtaining or the state of having a fidelity, indemnity, performance, payment, or similar bond. In commercial construction financing, bonding usually refers to a contractor’s performance bond. For employees of financial institutions, bonding usually refers to fidelity bonds. See fidelity bond, payment bond, and performance bond. 2. Refinancing short-term debt with long-term debt is sometimes called bonding out.
  
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