### Question
How does Surety Bond Guarantees define payment bond?


### Answer
Under *15 U.S.C. § 694a*, **payment bond** is defined as:

> a bond conditioned upon the payment by the principal of money to persons under contract with him

#### Citation:
  - *15 U.S.C. § 694a*
  - Heading: **CHAPTER 14B-SMALL BUSINESS INVESTMENT PROGRAM > SUBCHAPTER IV&ndash;A-GUARANTEES > Part B-Surety Bond Guarantees**

