A Service Contracts Bond is a type of bond that covers the cost to maintain and repair equipment, buildings, and other physical structures. These bonds are often issued by utilities, schools, and other governmental agencies to finance their infrastructure's maintenance costs.
The interest rate can vary depending on the bond being issued, but it generally offers a lower rate than bank loans or traditional bonds.
The annual payment for a Service Contracts Bond can range from $1 to $5 per month, depending on the agency and its needs.
Service Contracts Bonds are most commonly used in the utility industry but can also be used in public schools, government agencies, and other organizations.