Meaning of “indemnity bond” in the English Dictionary

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"indemnity bond" in Business English

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indemnity bondnoun [ C ]


a legal agreement in which a financial organization promises to make a payment to an organization that has lent money if they do not get the loan back:

Lenders reduce their risk by using indemnity bonds for mortgages over 70-80 % of the value of the property.

(Definition of “indemnity bond” from the Cambridge Business English Dictionary © Cambridge University Press)