Option for paying bond

An accommodation bond can be paid in the form of a lump-sum or as equivalent periodic payments or as a combination of both.

Where a person chooses to pay a bond as periodic payments, each payment will consist of a component to cover the draw down the facility could have made on the bond had it been paid as an equivalent lump sum, plus a component to cover the interest the facility could have earned on the bond had it been paid as an equivalent lump sum.