(1) Either the process of obtaining or the state of having a fidelity, indemnity, performance, payment, or similar bond. In commercial construction financing, bonding usually refers to a contractor's performance bond. For employees of financial institutions, bonding usually refers to fidelity bonds.
See fidelity bond, payment bond and performance bond.
(2) Refinancing short-term debt with long-term debt is sometimes called bonding out. American Banker Glossary
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the practice of keeping goods that have been imported in a special building and officially promising to pay the import tax when it is due:
• a $100 auction-licensing fee and $80 a month to cover bonding
Financial and business terms. 2012.