### Question
Can you define what payment bond means?


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

> 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 IVdashA-GUARANTEES > Part B-Surety Bond Guarantees**

