Completion Bonds Clause Samples
A Completion Bonds clause requires a third-party guarantee that a project, typically in film or construction, will be finished according to agreed specifications, budget, and timeline. In practice, a completion bond is purchased from a specialized insurer who monitors the project's progress and steps in to provide additional funds or management if delays or overruns occur. This clause primarily protects investors and lenders by reducing the financial risk of non-completion, ensuring that the project reaches completion as planned.
Completion Bonds. With respect to each Motion Picture produced for MVL, (x) cause the related Production Company to maintain a customary Completion Bond with a Completion Guarantor in the amount of the Budget (except to the extent the Control Party agrees in advance, in writing, to allow for Excluded Budget Items, in which case such Completion Bond need not cover such Excluded Budget Items) and covering the “Maximum Interest Amount” and the “Maximum Charges” (or analogous items covering the maximum interest, costs and expenses of the Lenders and the Insurer for such Motion Picture) as defined in such Completion Bond, for such Motion Picture and providing for the required “Delivery Items” on the Delivery Schedule, and otherwise covering such risks as is consistent with then customary industry practices, and (y) cause the related Production Company to enter into a producer’s completion agreement with such Completion Guarantor, in each of (x) and (y) above substantially in the form of Annex 7 (excluding the exhibits and schedules thereto which may be changed from Motion Picture to Motion Picture without the approval of the Control Party to the extent such change does not diminish in any material respect the rights or remedies of the Borrower under such Completion Bond, taking into consideration the differences in each Motion Picture) or with such changes thereto as are reasonably acceptable to the Control Party. MPROD shall ensure that the “Outside Delivery Date” (or, with respect to a Completion Guarantor other than IFG, such analogous outside date for delivery) set forth in any such Completion Bond shall be a date which requires delivery of the “Mandatory Delivery Items” (as defined in the applicable Completion Bond) to the applicable Studio Distributor on or before the delivery date that such Studio Distributor would require if such Studio Distributor were to release such Motion Picture on the last Friday of the anticipated release window for such Motion Picture. MPROD will not cancel, amend or replace any Completion Bond (other than the exhibits and schedules thereto to the extent permitted hereunder) after the same shall have been issued, or permit the related Production Company to do so, without the prior written consent of the Control Party. MPROD will not acknowledge that any Motion Picture has been “delivered” under any Completion Bond until the Control Party and MPROD have received written acknowledgment from the applicable Studio Distributor that Delivery of the “Ma...
Completion Bonds. (a) In addition to the issuance of Additional Bonds that meet the requirements of Section 8.1 above, the City reserves the right to issue one or more series of Completion Bonds payable from and secured by the Revenues on a parity with the Bonds in the principal amount not exceeding ten percent (10%) of the aggregate principal amount of Bonds initially issued to finance the Project to pay the cost of completing any portion of the Project and for which Bonds have been issued.
(b) Prior to the issuance of any series of Completion Bonds, the City must provide the certifications required by Sections 8.1(a)(i), (ii) and (iii) and a certificate of an Authorized Representative:
(i) stating that all amounts allocated to pay Costs of the Project from the proceeds of the most recent series of Bonds issued in connection with the Project for which the Completion Bonds are being issued were used or are still available to be used to pay Costs of the Project;
(ii) containing a calculation of the amount by which the aggregate Costs of the Project exceeds the sum of the Costs of the Project paid to such date plus the moneys available at such date within the Construction Fund or other like fund or account applicable to the Project plus any other moneys which the City has determined to be available to pay such costs in any other fund; and
(iii) certifying that the issuance of the Completion Bonds is necessary to provide funds for the completion of the Project.
Completion Bonds. In order to insure the completion of the Project, the Governmental Unit will require that the contractor to whom is given any contract for construction appertaining to the Project supply a completion bond or bonds satisfactory to the Governmental Unit, and that any sum or sums derived from said completion bond or bonds shall be used within six (6) months after such receipt for the completion of said construction, and if not so used within such period, shall be treated as Gross Revenues.