Project Completion Restriction
Definition
Clause in bond agreements that requires the issuer of the bond to take on additional debt, if necessary, to finance the completion of a project. Typically, the issuer of a bond repays lenders using revenue generated from a completed project. A project completion restriction requires the issuer to take on whatever additional debt is needed to complete a project so that it can generate revenue. This type of clause is used mainly in municipal bond agreements.
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