Penal Bond – a bond conditioned upon the performance of duties of office, or other obligations undertaken by the principal obligor in the bond or collateral things to be done by him

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penal bond:
(17c)

1. A bond requiring the obligor to pay a specified sum as a penalty if the underlying obligation is not performed.  aka penal bill; common defeasance bond. [1]

1. A bond conditioned upon the performance of duties of office, or other obligations undertaken by the principal obligor in the bond or collateral things to be done by him.  12 Am J2d Bonds § 1.

A bond conditioned upon the forfeiture of a penalty for its breach, as distinguished from a bond providing for liquidated damages. Carey v Mackey, 82 Me 516, 20 A 84. [2]

1. A bond requiring the obligor to pay a specified sum of money as a penalty if she fails to perform the obligation that is the subject of the bond.  In the event of default, the collateral that secured the bond is forfeit.  A penal bond is distinguishable from a  bond providing for liquidated damages.
     Compare simple bond.  See penalty. [3]

penal sum – the monetary amount specified as a penalty in a penal bond.

References:

Disclaimer: All material throughout this website is compiled in accordance with Fair Use.

[1]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black & Editor in Chief Bryan A. Garner. ISBN: 978-0-314-62130-6

[2]: Ballantine’s Law Dictionary with Pronunciations
Third Edition
 by James A. Ballantine (James Arthur 1871-1949).  Edited by William S. Anderson.  © 1969 by THE LAWYER’S CO-OPERATIVE PUBLISHING COMPANY.  Library of Congress Catalog Card No. 68-30931

[3]: Ballantine’s Law Dictionary Legal Assistant Edition
by Jack Ballantine 
(James Arthur 1871-1949).  Doctored by Jack G. Handler, J.D. © 1994 Delmar by Thomson Learning.  ISBN 0-8273-4874-6.

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