builder's bonds

Definition

Debentures issued to the public by home builders to finance a housing development that are backed by the mortgages of home buyers within the development. Bondholders are given a senior position over unsecured creditors for the repayment of debt.

Use builder's bonds in a sentence

There were some builder's bonds being issued and we all thought it was very important to do and to keep track of.

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You should try and see if there is any way you can get involved in builder's bonds that may end up making a lot of money.

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When my brother's development company decided to build a new housing development near our hometown, he financed the operation by issuing builder's bonds.

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builder-financed construction builder's risk coverage forms