On-demand bond

{
  "id": "MLC-T-INS-002409",
  "term": "On-demand bond",
  "field": "Insurance and risk management",
  "definition": "A type of guarantee issued by a bank or financial institution that obligates the issuer to pay a specified sum to the beneficiary immediately upon receiving a written demand, without requiring proof of default by the principal. This bond functions as a primary obligation of the issuer, independent of the underlying contract between the principal and the beneficiary. It provides a high level of security for the beneficiary in international trade and construction projects.",
  "url": "https://mlchart.com/terminology/insurance/on-demand-bond/"
}