à titre de garantie d'achèvement -> as a completion bond, as a completion guarantee


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à titre de garantie d'achèvement -> as a completion bond, as a completion guarantee

A completion bond (sometimes referred to as a completion guarantee) is a form of insurance offered by a completion bond company (in return for a percentage fee based on the budget) that is often used in independently financed films to guarantee that the producer will complete and deliver the film (based on an agreed script, cast and budget) to the distributor(s) thereby triggering the payment of minimum distribution guarantees to the producer (but received by the bank/investor who has cash flowed the guarantee (at a discount) to the producer to trigger production).
The producer will agree to deliver a film (based on an agreed script/cast/budget) to a distributor in respect of certain territories in consideration (inter alia) for payment of a "minimum distribution guarantee" payable at the point in time when the producer has delivered the completed film. The producer obviously requires such funds upfront to finance the film so the producer takes signed the distribution contract to a bank/financier and will effectively use it as collateral against a production loan - it is at this stage that the bank will require a completion bond to be involved to provide them with the required level of security against the risk non-delivery by the producer. The parties to the completion bond agreement are typically the producer, the financier(s), the bond company and the distributor(s).[...]
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