TeachMeFinance.com - explain Performance Bond
Performance Bond --
Cash or securities deposited before a landfill operating permit is issued, which are held to ensure that all requirements for operating ad subsequently closing the landfill are faithful performed. The money is returned to the owner after proper closure of the landfill is completed. If contamination or other problems appear at any time during operation, or upon closure, and are not addressed, the owner must forfeit all or part of the bond which is then used to cover clean-up costs.
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