### Question
What is the definition of bid bond?


### Answer
The definition of **bid bond** is as follows in *15 U.S.C. § 694a*:

> a bond conditioned upon the bidder on a contract entering into the contract, if he receives the award thereof, and furnishing the prescribed payment bond and performance bond

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

