bond – a written promise acknowledging the obligation to pay a debt; either as money or to perform some act if certain circumstances occur or a certain time elapses

     This page is continued from Legal Instruments >>>> Securities:


n. (16c)

1. Noun.  The obligation secured by a  mortgage or deed of trust; a corporate obligation.  19 Am J2d Corp § 1059; at common law, a sealed instrument or specialty.  34 Am J1st Lim Ac § 82; an obligation in writing which binds a signatory to pay a sum certain upon the happening of an event and carries a seal, except where controlled by a statue which dispenses with the necessity of a seal.  12 Am J2d Bonds § 1.

So defined, the term is generic, embracing investment bonds, penal bonds, indemnity, fidelity, and surety bonds 12 Am J2d Bonds § 1.

Less frequently, the term i used for a bail or a surety.

1. VerbTo give a bond as security.
     See undertaking. [1]

1. A debt owed by a corporation or the government to an investor.

2. The written instrument that evidences a debt.

3. An obligation to pay a sum of money upon the happening of a stated event.

4. A debt secured by a mortgage. [2]

1. An obligation; a promise. [3]

     Excerpt from Frederick Pollock & Frederic W. Maitland’s The History of English Law (2d ed. 1899):

     “[A]n obligation, or in English a ‘bond,’ is a document written and sealed containing a confession of a debt; in later times ‘contract’ is the genus, ‘obligation’ the species.” [4]

2. A written promise to pay money or do some act if certain circumstances occur or a certain time elapses; a promise that is defeasible upon a condition subsequent; especially, an instrument under seal by which

(1) a public officer undertakes to pay a sum of money if he or she does not faithfully discharge the responsibilities of office, or
(2) a surety undertakes that if the public officer does not do so, the surety will be liable in a penal sum. 

     Excerpt from Silvester E. Quindry, Bonds & Bondholders: Rights & Remedies (1934):

     “The fact that an instrument is called a ‘bond’ is not conclusive as to its character.  It is necessary to disregard nomenclature and look to the substance of the bond itself.  The distinguishing feature of a bond is that it is an obligation to pay a fixed sum of money, at a definite time, with a stated interest, and it makes no difference whether a bond is designated by that name or by some other, if it possesses the characteristics of a bond.  There is no distinction between bonds and certificates of indebtedness which conform to all the characteristics of bonds.[5]

Various Types of Bonds:

      Many bonds, depending on their precise terms, may properly be included in more than one classification. [2]

Various Types of Investment Bonds:

     Bonds that represent debt and pay interest are called investment bonds. [2]

investment bonds – bonds that represent debt and pay interest.

      Examples of investment bonds issued by corporations include convertible bonds, coupon bonds, guaranteed bonds, registered bonds, serial bonds, and term bonds.  (Also see junk bonds.) [2]

convertible bond – a bond or debenture issued with the privilege of converting them into other securities, usually the common stock of the issuing corporation.

coupon bond – a bond in which the interest, which is payable separately from the principal, is represented by detachable coupons.

guaranteed bond – a bond issued by a corporation and guaranteed by a third party (sometimes by a parent corporation). — aka endorsed bond; assumed bond; joint bond.

junk bond – a bond that pays interest at a high rate because of significant risks — often issued to raise money quickly in order to buy the shares of another company.

registered bond – a bond or security which specifies a person entitled to the security or to the rights it evidences and the transfer of which may be registered upon books maintained for that purpose or on behalf of an issuer. — aka registered security.

serial bonds – bonds of a corporation or a municipality issued at the same time but redeemable at different specified dates.

term bonds – bonds issued at one time, all of which fall due at one time.

     Unsecured, long-term corporate bonds are called debentures. [2]

debenture – voucher representing indebtedness, issued by a corporation, and though unsecured, it is secured only by the debtor’s earning power based on a pledge of income, not by a lien on any specific asset.

     Examples of of investment bonds issued by government include municipal bonds, savings bonds, and school bonds.
See government bond.

government bond A bond issued by a  government. [2]

municipal bond – a tax-exempt, negotiable bond which serves as an evidence of indebtedness issued as one of a series of instruments issued at the same time by a nonfederal government or governmental unit in order to finance state or local improvements.

Types of Bonds that are
Obligation to Pay Money
if a certain Event Takes Place:

     Bonds that are obligation to pay money if a certain event takes place are generally classified either as surety bonds (which includes bail bonds and performance bonds), fidelity bonds (payable in the event of employee dishonesty, e.g., embezzlement), indemnity bonds, or penal bonds. [2]

fidelity bond – a bond in the form of an insurance contract which indemnifies an employer or business for loss due to embezzlement, larceny, or gross negligence by an employee or other person holding a position of trust.

indemnity bond – a bond to reimburse the holder for any actual or claimed loss caused by the issuer’s or some other person’s conduct.

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.

surety bond – a bond that secures the performance of an obligation

  • performance bond – a contractor’s bond which guarantees that the contractor will perform the contract, and usually provides that if the contractor defaults and fails to complete the contract, the surety can itself complete the contract or pay damages up to the limit of the bond.
  • bail bond – a bond given to a court by a criminal defendant’s surety to guarantee that the defendant will duly appear in court in the future and, if the defendant is jailed, to obtain the defendant’s release from confinement.


Examples of Indemnity and Penal Bonds:

  Examples of indemnity and penal bonds include appeal bonds, attachment bonds, bid bonds, completion bonds, and peace bonds.  [2]

appeal bond – a bond that an appellate court may require from an appellant in a civil case to ensure payment of the costs of appeal, as a condition to bringing an appeal or staying execution of the judgment appealed from.  Fed. R. App. P. 7.

attachment bond – a bond a defendant gives to recover attached property; the plaintiff then looks to the bond issuer to satisfy a judgment against the defendant.

bid bond – a type of performance bond filed in public construction projects in order to indemnify the public against the consequences of a bidder’s failure to follow through on the bid.

completion bondsurety bond guaranteeing payment of the cost of completing a construction contract if the contractor fails to complete it in accordance with the terms of the contract.

peace bond – a bond that a court requires as security to be posted by a person who has breached or threatened to commit a breach the peace.


arbitration bond:  See ARBITRATION BOND.

blank bond: (17c) Archaic. A bond in which the space for the creditor’s name is left blank.

blanket bond: (1899) l. A bond covering several penomor projects that require performance bonds. 2. See fidelity bond.

bond for land – (1808) A bond given by the seller of land to a buyer, binding the seller to convey once the buyer tenders the agreed price. — aka bond for a deed.  Cf. BINDER (1).

bond of corroboration: (1933) An additional obligation undertaken to corroborate the debtor’s original obligation.

Maritime Bonds:

bottomry bond – a contract for the loan of money on a ship, usually at extraordinary interest, for maritime risks encountered during a certain period or for a certain voyage, which can be enforced only if the vessel survives the voyage.


common-law bond: (1833) A performance bond given by a construction contractor.  *  A common-law bond exceeds the requirements of a statutory performance bond because it provides additional coverage for construction projects. Cf. PERFORMANCE BOND.

common money bond: (182 8) A promise to pay money as a penalty for failing to perform a duty or obligation.

cost bond – (1875) A bond given by a litigant to secure the payment of court costs.

counterbond: (16c) A bond to indemnify a surety. p delivery bond. See forthcoming bond.

depository bond. (1896) A bond given by a bank to protect a public body’s deposits should the bank become insolvent.

discharging bond. (18c) A bond that both permits a defendant to regain possession of attached property and releases the property from the attachment lien. -Also termed dissolution bond. See forthcoming bond.

executor’s bond. (18c) A bond given to ensure the, utor’s faithful administration of the estate. ‘weMu, band.

     “The English law did not require an executor to giver becauselie was appointed by the testator and his a rim. was derived from the will rather than court appointm, Some American jurisdictions do not require a bond in executor. in the majority of our states a testator may by. dispense with the executor’s bond, but in ahsnnre oi testamentary provision a bond will be rerpiireri.“ 11”,), E. Atkinsson, Handbook of the Law of Wills it i, at Mi , ed. 195 ).

forthcoming bond. (18c) l. A bond guaranteeing that something will be produced or forthcoming at a par. ticular time, or when called for. 2. A bond (usu. given to a sheriff) to permit a person to repossess attached property in exchange for that person’s commitment to surrender the property in the event of an adverse judgment; specif., a bond required of a defendant as a condition of retaining or regaining possession of a chattel in an attachment or replevin action, whereby the surety agrees to surrender the chattel and to pay its value if the plaintiff wins the lawsuit. —Also termed delivery bond. Cf. replevin bond.

general-average bond. (1867) Maritime law. A bond given to the captain of a ship by consignees of cargo subject to general average, guaranteeing payment of their contribution once it is ascertained. 0 When the contribution amounts are disputed, the carrier requires this bond before agreeing to unload the ship. It may also be required when the amounts are undisputed, as security for payment. -Also termed average bond. See general average under AVERAGE (3).

r guaranty bond. (1892) A bond combining the features of a iidelity bond and a performance bond, securing both payment and performance. ~Also written guarantee bond.

heritable bond. (17c) Scots law. A bond secured by land.

hypothecation bond. (18c) Maritime law. A bond given in the contract of bottomry or respondentia.

injunction bond. (1850) Abond required of an injunction applicant to cover the costs incurred by a wrong fully enjoined party; a bond required as a condition of the issuance or continuance of an injunction. Fed. R. Civ. P. 65(c).

interim bond. (1905) l. A bond set by a police otlicer when a person is arrested for a minor offense, such as a misdemeanor, without a warrant. 0 Although the bond allows the arrestee to be released, it requires that the person be available for arraignment, 2. A bond set by

a judge or magistrate and attached to a misdemeanor warrant.

y joint bond. (17c) A bond signed by two or more obligors. 0 In contrast to a joint and several bond, all the obligore must be joined if an action is brought on the bond. 866 guaranteed bond (1).

,judicial bond. (18c) A bond to indemnif an adverse party in a lawsuit against loss occasione by delay or by deprivation of property resulting from the lawsuit, 0 Judicial bonds are usu. classified according to the nature of the action in which they are required, as with appeal bonds, injunction bonds, attachment bonds, replevin bonds, forthcoming or redelivery bonds, and bail bonds. A bond of a fiduciary -such as a receiver, administrator, executor, or guardian —is often required as a condition to appointment.

liability bond. (1908) A bond intended to protect the assured from a loss arising from some event specified in the bond.

r license bond. (1850) A bond required of a person seeking a license to engage in a specified business or to receive a certain privilege. -Also termed permit bond.

> maintenance bond. (1855) A bond guaranteeing against

construction defects for a period after the completion of the contracted-for work.

> mortgage bond. (1853) A bond secured by the issuer’s real property. See bond and mortgage.

> negotiable bond. (1809) A bond that can be transferred from the original holder to another.

official bond: (18C) 1. A bond given by a public officer requiring the faithful performance of the duties of oflice. 2. A bond filed by an executor, guardian, trustee, or other fiduciary. See fiduciary bond.

payment bond. (1877) A bond given by a surety to cover any amounts that, because of the general contractor’s default, are not paid to a subcontractor or materials supplier.

“[T]he bond serves two purposes: it assures the owner a lien-free project, and it induces suppliers and subcontractors to accept work on the project, perhaps at a lower price, because of the assurance that they will be paid. Since no additional charge is generally made for a payment bond when a performance bond is being purchased, the two are usually issued simultaneously.” Grant S.;Nelson, Real Estate Finance Law § 12.2, at 881 (3d ed. 1994).

pay-when-paid bond. A surety’s bond according to which the surety must satisfy the claims of subcontractors, suppliers, or laborer’s only to the extent that the contractor has been paid for the labor, services, or materials provided by those persons. 0 If a construction contract does not contain a pay~when~paid clause, the bond is considered an unconditional payment bond, and the surety must satisfy the claims of subcontractors. suppliers, or laborers regardless of whether the contrac~ tor has been paid.

personal bond. (17c) 1. See bail bond. 2. A written document in which an obligor formally recognizes an obligation to pay money or to do a specified act. 3. Scot: law. A bond containing a promise without security.

probate bond. (18c) A bond, such as that filed by an executor, required by law to be iven during a pm r to proceeding to ensure falthquperformance by the person under bond.

refunding bond. (18c) A bond given to assure an executor that a legatee will return an estate distribu tion should the remaining estate assets be insufficient to pay the other legacies.

“Refunding bonds taken by personal representatives afford a similar protection to them that indemnifying bonds do to sheriffs. The statute directs the bond to be filed in the clerk’s office of the proper court; and, when so filed, it is a bar to an action against the personal representative who shall have paid a legacy or distributed the decedent’s estate, by a creditor, the existence of whose debt shall not here been known to the personal representative before such payment or distribution, or within one year from his qualification. The creditor, however, may bring his suit upon the refunding bond in the name of the obligee, or his personal representative, for his own benefit.” 1 R.T. Barton, The Practice in the Courts of Law in Civil Cases 162 (1891).

registered bond. See REGISTERED BOND (1).

removal bond. (1868) l. A bond to cover possible duties owed by a person who removes goods from a warehouse for export. 2. A bond required in some states when a litigant seeks to remove an action to another court.

replevin bond (ri-plev-in). (18c) 1. A bond given by a plaintiff to replevy or attach property in the defendant’s possession before judgment is rendered in a replevin ,action. 0 The bond protects the attaching ofhcer and ensures the property’s safekeeping until the court decides whether it should be returned to the defendant. 2. A bond given by a defendant in a replevin action to regain attached property pending the outcome of litigation. 0 The bond does not discharge the attachment lien. –Also termed replevy bond; claim-property bond; redelivery bond. See REPLEVIN. Cf. forthcoming bond.

respondentia bond (re-spon-den-shee-a or ree-). (18c) A contract containing the pledge of a ship’s cargo; a mortgage of a ship’s cargo. Cf. bottomry bond. “A respondentia bond is a loan upon the pledge of the cargo, though an hypothecation of both ship and cargo may be made in one instrument; and generally, it is only a personal obligation on the borrower, and is not a specific lien on the goods, unless there be an express stipulation to that effect in the bond; and it amounts, at most, to an equitable lien on the salvage in case of loss.” 3 James Kent, Commentaries on American Law *354-55 (George Comstock ed., 11th ed. 1866).

> simple bond. (17c) l. A bond without a penalty. 2. A

bond payable to a named obligee on demand or on a certain date.

statutory bond. See STATUTORY BOND.

straw bond. (1876) A bond, usu. a bail bond, that carries either a fictitious name or the name of a person who is unable to pay the sum guaranteed; a worthless or inadequate bond.

submission bond. (18c) A bond given by a liti ant who agrees to submit a lawsuit to arbitration and to e bound by an arbitrator’s award.

supersedeas bond (soo-par-see-dee-as). (18c) An appellant’s bond to stay execution on a judgment during the pendency of the appeal. Fed. R. Civ. P. 62(d); Fed. R. App. P. 8(b). -Often shortened to supersedeas. See 5092115502 (2). Cf. appeal bond.

surety bond. See PERFORMANCE 301415.

ten-percent bond. (1968) A bail bond in the amount of 10% of the bond otherwise required for a defendant’s release. 0 This type of bond usu. allows a defendant to arrange a bond without the services of a bondsman or other surety.

unsecured bail bond. (1970) A bond that holds a defendant liable for a breach of the bond’s conditions (such as failure to appear in court), but that is not secured by a deposit of or lien on property. See RECOGNIZANCE.

3. A long-term, interest-bearing debt instrument issued by a corporation or governmental entity, usually to provide for a particular financial need; esp., such an instrument in whic the debt is secured by a lien on the issuer’s property. Cf. DEBENTURE.

p accrual bond. (1992) A bond -usu. the last collateralized-mortgage-obligation issue -from which no principal or interest payment will be made until any bonds issued earlier have been fully paid. Also termed Z-band.

b adjustment bond. (1917) A bond issued when a corporation is reorganized. -Also termed reorganization band.

a» annuity bond. (18c) A bond that lacks a maturity date and that perpetually pays interest. Also termed consol; perpetual bond; continued bond; irredeemable bond.

5 arbitrage bond. (1968) A municipal bond, the proceeds of which are invested in bonds paying a higher yield than that paid by the municipality on its own bonds. 0 Under the Internal Revenue Code, the tax-free aspect of municipal-bond income may be lost if the bonds are classined as arbitrage bonds. See ARBITRAGE.

5 assessment bond. (1894) A municipal bond repaid from property assessment taxes.

> assumed bond. See guaranteed bond (1).

or baby bond. (1925) I. A bond having a small face value, usu. less than $500 or $1,000. 2.. English law. A voucher or contribution deposited on behalf of a child into a trust fund or individual savings account from which funds cannot be withdrawn until he or she becomes an adult.

theater bond. (1887) A bond payable to the person holding it. 0 The transfer of possession transfers the

band’s ownership. Cf. registered bond.

v bond and mortgage. (1823) A bond that is backed by a mortgage on realty. -Also termed mortgage bond. Cf. max (3).

book entry bond. 1982)Abond for which no written uedto reflect ownership.

callable bond. (1926) See redeemable lmml.

> chattel-mortgage bond. (2005) A bond secured} mortgage on personal property. ‘7

t‘ closed-end mortgage bond. (1996) A mortgage in,” with provisions prohibiting the debtor from m “n additional bonds against the bond’s collateral.

5 collateral trust bond. (1918) l. A bond representln debt secured by the dc osit of another security w .l,’ trustee. Also terme collateral trust certificate 2 4 long-term corporate bond that is secured by other can, panies’ mort age bonds held by the coerraUlm. wb ( pledges and epositsthe mortga e bun s in trust. 0 ”e interest on these collateral trust onds is typically ltywe’ than that received on the bonds pled ed; the sur ) s is used to form a sinking fund to re eem the coll 1 eral trust bonds. A holding company often issues the,e bonds by pledging the stock of a subsidiary.

* commodity-backed bond. (1986) A bond with lHlCYEgt payments or principal repayment tied to the price of; Specific commodity, such as gold. 0 This type of bond which has a low interest rate but provides a hedgé against inflation because the commodity price will usu. rise, is often issued by a firm with a stake in the commodity.

5 consolidated bond. (1879) l. A railroad bond secured by a mortgage on the entire railroad line formed by

several consolidated railroads. Cf. divisional bond. ‘2. A single bond that replaces two or more outstanding issues. ‘

b construction bond. (1880) A bond issued by a govern~ mental entity for a building project.

b continued bond. See annuity bond.


bcorporate bond. (1842) 1. An interest-bearing instrument containing a corporation’s promise to pay a iixed sum of money at some future time. 0 A corporate bondmay be secured or unsecured. 2. A bond issued by a corporation, usu. having a maturity of ten years or longer.

> county bond. (1852) A county-issued bond paid through a levy on a special taxing district, whether or not the district is coextensive with the county.

p cumulative-income bond. See income bond.

kcushion bond. (1980) A bond paying an uncommonly high interest rate.

r debenture bond. See DEBENTURE (3).

r deferred-interest bond. (1959) A bond whose interest payments are postponed for a time.

h discount bond. (1918) A bond sold at its current market value, which is less than its face value. …. Also termed non-interestbearing bond.

y divisional bond. (1951) A railroad bond secured by a mortgage on a specific segment of a consolidated railroad system. Cf. consolidated bond (1).

, endorsed bond. See guaranteed bond (1).

equipment trust bond. (1898) See EQUIPMENT mum CERTIFICATE.

7 ex coupon bond. (1998) A bond sold without coupons attached.

7 ex legal municipal bond. A municipal bond that does not have the legal opinion of a bond-law hrm printed on it. Cf. municipal bond.

7 first-mortgage bond. (1855) A long-term bond that has the first claim on speciiied assets.

7 flat bond. (1916) A bond that trades without accrued interest.

p floating-interest bond. (1977) A bond with an interest rate that moves up and down with changing economic conditions.

y flower bond. (1974) A Treasury bond redeemable before maturity if used to settle federal estate taxes. 0 Flower bonds were issued before April 1971 and reached final maturity in 1998. Two etymological theories have been advanced to explain the term. The first, and more likely, is that the bonds had flowers engraved on their reverse side. The second is that they “blossomed” upon the death of their owner.

p foreign bond. (1830) A bond issued in a currency different from that used where the issuer is located, such as a Canadian-government bond that is denominated in US. dollars and issued in the United States.

> full-faith-and-credit bond. See general-obligation bond.

p general-mortgage bond. (1865) A corporate bond secured by a blanket mortgage on property. 0 The general-mortgage bond, however, is often less valuable because it is subordinate to prior mortgages.

y general-obligation bond. (1915) A municipal bond payable from general revenue rather than from a special fund. 0 Such a bond has no collateral to back it other than the issuer’s taxing power. Often shortened to obligation bond. — aka full-faith-and-credit bond.

“There are two main types of bonds issued by local governments: general obligation bonds and revenue bonds. . . . Bonds will be assumed to be general obligation unless they themselves contain a clear promise to pay only out of a special fund.” Osborne M. Reynolds Jr., Handbook of Local Government Law § 104, at 323 (1982).

gold bond. (1868) l. Hist. A bond payable in gold coin or US. currency at the election of the bondholder. 0 This type of bond existed until 1933, when the US. monetary system abandoned the gold standard. 2. A commoditybacked bond that is secured by gold and issued by a gold-mining company.

government bond. 1. See savings bond. 2. See govern~ ment securiiy under SECURITY (4).


‘* high-yield bond.(1906) A high-risk, high~yield subordmated bond issued by a company with a credit rating

be ‘nvestment grade. ~ Also termed junk bond; debt obligation; higheyield security.

improvement bond. See revenue bond.

> income bond. (1882) A corporate bond secured by the corporation’s net income, after the payment of interest on senior debt. 0 Sometimes this type of bond is a cumulative-income bond, in which case, ifthe income in any year is insuilicient to pay the full interest, the deficit is carried forward as a lien on any future income. Also termed cumulative-income bond.

> indeterminate bond. (1917) A callable bond with no set maturity date.

> indexed bond. (1957) A bond whose interest rate or maturity value is linked to an index such as the consumer price index.

> industrial~development bond. (1946) l. A type of revenue bond in which interest and principal payments are backed by a corporation rather than a municipal‘ ity. 0 This type of bond usu. finances a private business facility. 2. A tax-exempt municipal bond that finances a usu. local industry. Also termed industrial-revenue bond.

> inflation-indexed bond. (1988) A bond whose interest rate 1S adjusted according to changes in the inflation rate so that the real rate of return is constant.

> insurance bond. (1983) A single-premium life-insurance policy designed to serve as an investment by accumulating a cash value that earns interest.

> interchangeable bond. (1906) A bond that can be exchanged for a different type of bond, such as a coupon bond that may be exchanged for a registered bond.

> interest bond. (1847) A bond paid in lieu of interest due on other bonds.

> investment-grade bond. (1901) A bond with a rating of BBB or better by the leading bond-rating services. See INVESTMENT-GRADE RATING. . .

> irredeemable bond. See annuity bond. r

p joint and several bond. (18c) A bond in which the principal and interest are guaranteed by two or more obligors. *

> joint bond. (17c) A bond signed by two or more obligors. o In contrast to a joint and several bond, all the obligors must be joined if an action is brought on the bond.

r junior bond. (1877) A bond subordinate in priority to another bond. Also termed subordinated bond.

v leasehold-mortgage bond. (1939) A bond issued by a lessee and secured by the lessee’s leasehold interest.

5 Lloyd’s bond. Hist. English law. A corporate bond issued on work done or goods delivered. 0 A bond issued in this manner avoids any restriction on indebtedness existing either in law or in corporate bylaws. The term supposedly derives from an English lawyer named Lloyd, who is credited with devising the method.

v mortgage bond. (1853) A bond secured by the issuer’s real property. > multimaturity bond. See put bond.


r noncallable bond. See noncallable security under SECURITY (4).

Ir non-interest~bearing bond. See discount band. I» nonstatutory bond. See voluntary band. i» obligation bond. See general obligation bond.

> open-end mortgage bond. (1930) A mortgage bond that can be used as security for another bond issue.

> optional bond. (1930) A bond that the holder may redeem before its maturity date if the issuer agrees.

> option tender bond. See put bond.

” participating bond. (1928) A bond that entitles the

holder to a share of corporate proiits but does not have a fixed interest rate.

r passive bond. A bond bearing no interest. See passive debt under DEBT. .

> perpetual bond. See annuity bond. > plain bond. See DEBENTURE (3).

b post-obit bond. (18c) An agreement by Which a borrower promises to pay to the lender a lump sum (exceeding the amount advanced) upon the death of a person Whose property the borrower expects to inherit. 0 Equity traditionally enforces such bonds only if the terms are just and reasonable. Also termed post-obit agreement.

premium bond. (1871) A bond with a selling price above face or redemption value. See PREMIUM (3).

put bond. A bond that gives the holder the right to redeem it for full value at specified times before maturity. -Also termed multimaturity bond; option tender bond. Cf. put option under OPTION (5).

railroad-aid bond. (1873) A bond issued by a public body to fund railway construction.

> redeemable bond. (1902) A bond that the issuer may

repurchase before the maturity date. –Also termed callable band.

It re-funding bond. (1885) A bond that retires an outstanding bond.

b registered bond. See REGISTERED BOND (2). r reorganization bond. See adjustment bond.

b revenue bond. (1853) A government bond repayable from public funds. -Also termed improvement bond.

p savings bond. (1948) A nontransferable bond issued by the US. government. -Also termed government bond.

> school bond. (1858) A bond issued by a city or school district to fund school construction.

,, secured bond. (1849) A bond backed by some type of security. Cf. DEBENTURE (1), (3).

series bonds. (1920) A group of bonds issued under ih authority of the same indenture, but offered publicly a. different times and with different maturity date: “ml interest rates.

5 single bond. See bill obligatory under BILL (7).

5 sinking-fund bond. (1865) A bond backed by a sink;n fund for bond redemption. See sinking fund under “my? (1).

b special-tax bond. (1872) A municipal bond secured by taxes levied for a specific governmental purpose, Ugu improvements. –Also termed special-assessment bond:

5 state bond. (1839) A bond issued by a state. 5 statutory bond. See STATUTORY BOND. 5 subordinated bond. See junior bond.

5 tax-exempt bond. (1893) A bond that pays tax-free interest.



5 Treasury bond. See TREASURY BOND. 5 unsecured bond. See DEBENTURE (3).

5 voluntary bond. A bond not required by statute but given anyway. -Also termed nonstatutory bond.

5 Z-bond. See accrual bond.

5 zero-coupon bond. (1979) A bond paying no interest. 0 It is sold at a discount price and later redeemed at face value, the profit being the difference. –Also termed passive bond. See zero-coupon security under SECURITY


bond, vb. (16C) 1. To secure payment by providing a bond <at the creditor’s insistence, Gabriel consolidated and bonded his various loans>. 2. TO provide a bond for (a person) <the company bonded its offvsite workers>.

bondable, adj. (1922) Capable of Obtaining a bond to protect another person; of, relating to, or involving a person whose record is sufficiently clear of criminal convictions or other evidence of questionable character that a bonding agency would be willing to guarantee the person’s conduct. See BOND (2).

bondage (bahn-dij), 11. (14c) 1. Hist. Tenure of land by performing the meanest of services for a superior; VIL~ LEINAGB (1). 2. The state or condition of being a slave; involuntary servitude. 3. By extension, the condition or state of having one’s freedom limited or of being pre~ vented from doing what one wants; subjection to some power or influence. 4. The state or practice of being tied up for sexual pleasure.

bond and mortgage. See BOND (3).

bond conversion. (1879) The exchange of a convertible bond for another asset, usu. stock.

bond coupon. (1891) The part of a coupon bond that is clipped by the holder and surrendered to obtain an interest payment. See coupon bond under BOND (3).

bond covenant. A bond-indenture provision that protects bondholders by specifying what the issuer may or may not do, as by prohibiting the issuer from issuing more debt, See BOND INDEN‘I‘URE (1).

bond creditor. See CREDITOR.

bond discount. See DISCOUNT (3). bond dividend. See DtvanD.

bonded, adj. (1945) (Ofa person or entity) acting under, or placed under, a bond <a bonded court official).

bonded area. See PRBBPOR’I’.

bonded debt. See DEBT.

bonded warehouse. See wanmmusr

bond for a deed. See bond for lam! under noun (2)

bond for deed. 1. See CONVPYAPK a (6). 2. See an o my:

bond for land. See BOND (2).

bond for title(1834) Real estate. The seller’s retention of legal title until the buyer pays the purchase price. — aka bond for deed.  Cf. installment land contract under CONTRACT.

bond fundSee MUTUAL FUND.

bondholder(1823) Someone who holds a government or business bond.

bond indenture – (1891) 1. A contract between a bond issuer and a bondholder outlining a bond’s face value, interest rate, maturity date, and other features.

2. A mortgage held on specified corporate property to secure payment of the bond.

bonding companySee COMPANY.

bond issue – See ISSUE (2).

bond of corroborationSee BOND (2).

bond premium See PREMIUM (3).

bond rating – (1852) A system of evaluating and appraising the investment value of a bond issue.

bond retirement(1897) The cancellation of a bond that has been called or paid.

bondsman (13c) 1. Someone who guarantees a bond; a surety. 2. Hist. A serf or peasant; VILLEIN. — aka (in sense 2) bondman.

bond table (1867) A schedule used in determining a bond’s current value by its coupon rate, its time to maturity, and its effective yield if held to maturity.

bond trust – See TRUST (3). [1]


bond issue -1. All of the bonds issued by a corporation or a governmental entity at a given point in time. 2. The process of creating bonds and delivering them to purchasers, owners, or holders.

bond premium – The amount above face value paid for a bond by the purchaser.

bonded – 1. Secured by a bond.  2. Stored in a warehouse awaiting payment of customs duties. See bonded warehouse.

bonded debt – 1. An indebtedness ofa corporation that is secured by a hand issue. 2. Monetary obligations under taken by government I or governmental purposes, to be paid out of taxes.

bonded warehouse – 1 A building designated by the customs authorities for the storage of imported merchandise until customs duties are paid on that merchandise.

bondholder – A person who is the holder or owner of a government bond, mortgage bond, corporate bond, or other investment bond.

bondsman – The person who guarantees a bond, particularly a bail bond. See surety.

bonification of tax – The suspension of taxes, particularly taxes on goods to be exported. [3]


Disclaimer: All material throughout this website is pertinent to people everywhere, and is being utilized in accordance with Fair Use.

[1]: 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

[2]: 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.

[3]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black, Editor in Chief Bryan A. Garner. ISBN: 978-0-314-61300-4

[4]: 2 Frederick Pollock & Frederic W. Maitland, The History of English Law 207 (2d ed. 1899)

[5]: 1 Silvester E. Quindry, Bonds & Bondholders: Rights & Remedies § 2, at 3-4 (1934)


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