### Question
How is the term performance bond defined?


### Answer
The term **performance bond** is defined in *15 U.S.C. § 694a* as the following:

> a bond conditioned upon the completion by the principal of a contract in accordance with its terms

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

