Guarantors
The information contained on this page has been kindly supplied by The First Australian Completion Bond Company Limited (FACB) and Film Finances Incorporated.
What is a Completion Bond?
A completion bond on a feature film, television series, documentary or multi-media project guarantees to the investors, beneficiaries and financial institutions involved in the funding that the project will be completed for its budgeted costs in accordance with everybody's rights.
The Function of the Bond
The steadily increasing volume of independently produced films, television series, documentaries, and multi-media product for distribution has created spiralling demand for the service of completion guarantors.
The completion guarantor occupies the middle or 'neutral ground' between those actually involved in the artistic and managerial end of production, and those providing the financial resources to make the project happen.
Guarantors Experienced in New Zealand
The First Australian Completion Bond Company
The First Australian Completion Bond Company Limited (FACB) was established by Rob Fisher in 1990. In 1993 FACB joined forces with The Motion Picture Bond Company Inc (MPB) and then in 2001 with The Completion Guarantors Inc (TCG).
FACB specialise in making sure the job gets done. They operate at that point where art meets finance, providing a safety net that ensures the enforcement of the risk management and project management process.
The intricacy of contemporary production conditions - the maze of tax shelters, co-producers and other entrepreneurial strategies - increase the need for guarantors who are familiar with the production process as well as with financial structures. FACB offers this dual expertise.
FACB has worked on a number of well known New Zealand film and television projects in recent years including The Piano, Heavenly Creatures, The Frighteners, Scarfies, Stickmen, Rain and Perfect Strangers.
FACB Services
FACB/MPB managers and experts work with the management of the production from its inception through to its completion.
The FACB team believes their most important role is in initial project analysis and vetting which occurs during pre-production. Once an approach is made, FACB staff examine all aspects of the proposed venture - the script or technical specification, schedule and the budget. They liaise with production personnel to decide whether the project as presented is feasible.
As well as fulfilling the legal and financial requirements for a bond by monitoring progress and expenditure and paying out claims, FACB specialise in providing advice and assistance to producers on how to obtain the best value for dollars spent.
FACB's advice covers scheduling, locations, the use of special effects, and the availability and suitability of production crews. Advice on locations and production crews can be particularly valuable to a producer who is considering filming in unusual or remote locations.
Email FACB: facb@onaustralia.com.au
Film Finances Inc.
Film Finances is a world market leader in the provision of completion guarantees for the film and television industry.
Film Finances was founded in London 50 years ago, to provide financiers with a service which gave them the assurance that the film would be delivered on time and that budget overages would not be the financier's responsibility. Since then, Film Finances has provided completion guarantees to all the leading banks involved in the entertainment industry, and to all the major studios and distributors of motion pictures.
Since 1980 Film Finances' activities in New Zealand and Australia have been managed by Sue Milliken. Anni Browning acts as representative for feature films and television, and Jenny Woods for documentaries.
Film Finances' Services
When approached to provide a guarantee we first request the script, the shooting schedule and the budget. They are examined in detail and we next set up a meeting with the individual producer and any other personnel whose views and explanations about the project we consider to be relevant. When we believe that the project is feasible, a 'Letter of Intent' is issued confirming that, in principle, we are prepared to provide a guarantee of completion, subject to the fulfilment of certain stated conditions.
Once on risk we monitor daily progress reports of shooting and weekly costs statements. However, it is not our desire to interfere with production. We appreciate only too well that making motion pictures is a creative process combining talent and expertise. We monitor all stages of production and post production until delivery is completed in accordance with the distribution agreements.
The resources of Film Finances are available to producers and financiers at all times to provide advice and problem-solving backup. In addition to our 21 years experience in the Australasian film and television industry, and the comprehensive production background of Sue, Anni and Jenny which is unmatched by any other guarantor operating in the region, Film Finances has access through professional relationships to the finest production expertise in the industry.
Inevitably in the twenty-one years Film Finances has been operating in Australia and New Zealand there have been a number of claims on our guarantees, and in every case Film Finances has honoured its financial obligations promptly, and - equally importantly - sensitively with regard to the quality of the end product. We take pride in Film Finances' impeccable record in this regard. Internationally, we are able to call on our offices around the world for information which is an invaluable resource for producers.
Email Film Finances: filmfin@samsonprod.com.au
