BOND
BOND
bond,n.1. An obligation; a promise.
“[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.” 2 Frederick Pollock & Frederic W. Maitland, The History of English Law 207 (2d ed. 1899).
- 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; esp., 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.“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.” 1 Silvester E. Quindry, Bonds & Bondholders Rights & Remedies§ 2, at 3–4 (1934). 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; a bond required as a condition to bringing an appeal or staying execution of the judgment appealed from. Fed. R. App. P. 7. Cf. supersedeas bond. [Cases: Appeal and Error 373–395; Federal Courts 661, 687. C.J.S. Appeal and Error §§ 264, 288,
290–291, 295, 322–352.] appearance bond.See bail bond. arbitration bond.See ARBITRATION BOND.
attachment bond.A bond that a defendant gives to recover attached property. • The plaintiff
then looks to the bond issuer to satisfy a judgment against the defendant. [Cases: Attachment
261; Federal Civil Procedure 585. C.J.S. Attachment §§ 247–251, 258.]
average bond.Marine insurance. 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, on condition that their goods be promptly delivered. [Cases: Shipping 198. C.J.S. Shipping § 470.]
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. • The effect of the release on bail bond is to transfer custody of the defendant from the officers of the law to the custody of the surety on the bail bond, whose undertaking is to redeliver the defendant to legal custody at the time and place appointed in the bond. — Also termed appearance bond; recognizance. See BAIL. [Cases: Bail 54.1.] bid bond.A bond filed in public construction projects to ensure that the bidding contractor
will enter into the contract. • The bid bond is a type of performance bond. [Cases: Public Contracts
- C.J.S. Public Administrative Law and Procedure § 12.] blank bond.Archaic. A bond in which the space for the creditor’s name is left blank.
blanket bond. 1. A bond covering several persons or projects that require performance bonds. 2. See fidelity bond.
bond for land.A bond given by the seller of land to a buyer, binding the seller to convey once the buyer tenders the agreed price. — Also termed bond for a deed. Cf. BINDER(1). [Cases:
Vendor and Purchaser 27. C.J.S. Vendor and Purchaser § 22.]
bond of corroboration.An additional obligation undertaken to corroborate the debtor’s
original obligation.
bond to keep the peace.See peace bond.
bottomry bond.A contract for the loan of money on a ship, usu. at extraordinary interest, for maritime risks encountered during a certain period or for a certain voyage. • The loan can be enforced only if the vessel survives the voyage. — Also termed bottomage bond. Cf. respondentia bond. [Cases: Shipping 89–100. C.J.S. Shipping §§ 223–231.]
“A bottomry bond, strictly speaking, is a mortgage or pledge of a ship by the owner or agent, to secure the repayment of money lent for the use of the ship; and the conditions of it are, that if the ship is lost, the lender loses his money; but if it arrives, then, not only the ship itself is liable, but also the person of the borrower.” John Indermaur, Principles of the Common Law 169 (Edmund H. Bennett ed., 1st Am. ed. 1878).
“[T]he bottomry bond … is a sort of mortgage on a ship, entered into for the purpose of raising money in case of necessity in a foreign port. The advance of communications has caused bottomry and respondentia bonds to pass virtually out of use.” Grant Gilmore & Charles L. Black Jr., The Law of Admiralty § 1-10, at 25 n.85 (2d ed. 1975).
claim-property bond.See replevin bond. common-defeasance bond.See penal bond.
common-law bond.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. [Cases: Principal and Surety
65, 66(1). C.J.S. Principal and Surety §§ 70, 72–73, 75.]
common money bond.A promise to pay money as a penalty for failing to perform a duty or
obligation.
contract bond.See PERFORMANCE BOND.
cost bond.A bond given by a litigant to secure the payment of court costs. [Cases: Costs
120–124; Federal Civil Procedure 2732. C.J.S. Costs §§ 73–74.]
counterbond. A bond to indemnify a surety. delivery bond.See forthcoming bond.
depository bond.A bond given by a bank to protect a public body’s deposits should the bank
become insolvent.
discharging bond.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. [Cases: Attachment 261. C.J.S. Attachment §§ 247–251, 258.]
executor’s bond.A bond given to ensure the executor’s faithful administration of the estate. See fiduciary bond. [Cases: Executors and Administrators 26. C.J.S. Executors and Administrators § 71.]
“The English law did not require an executor to give bond because he was appointed by the testator and his authority was derived from the will rather than court appointment. Some American jurisdictions do not require a bond of an executor. In the majority of our states a testator may by will dispense with the executor’s bond, but in absence of such testamentary provision a bond will be required.” Thomas E. Atkinson, Handbook of the Law of Wills § 113, at 621 (2d ed. 1953). fidelity bond.A bond to indemnify an employer or business for loss due to embezzlement, larceny, or gross negligence by an employee or other person holding a position of trust. — Also termed blanket bond. [Cases: Insurance 1014, 2400. C.J.S. Insurance §§ 8, 1075.]
fiduciary bond.A type of surety bond required of a trustee, administrator, executor, guardian, conservator, or other fiduciary to ensure the proper performance of duties. [Cases: Executors and Administrators 26; Trusts 161. C.J.S. Executors and Administrators § 71; Trover and
Conversion § 302.]
forthcoming bond. 1. A bond guaranteeing that something will be produced or forthcoming at a particular 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. [Cases: Attachment 261. C.J.S. Attachment §§
247–251, 258.]
general-average bond.Maritime law. A cargo owner’s bond exacted by a carrier to ensure that
the owner will pay the general average contribution. • 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 of payment. — Also termed average bond. See general average under AVERAGE(3). [Cases: Shipping 198. C.J.S. Shipping § 470.]
guaranty bond.A bond combining the features of a fidelity and a surety bond, securing both
payment and performance.
heritable bond.Scots law. A bond secured by land.
hypothecation bond.A bond given in the contract of bottomry or respondentia. [Cases:
Shipping 89–100. C.J.S. Shipping §§ 223–231.]
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. [Cases: Indemnity 28.]
injunction bond.A bond required of an injunction applicant to cover the costs incurred by a
wrongfully enjoined party; a bond required as a condition of the issuance or continuance of a bond.
Fed. R. Civ. P. 65(c). [Cases: Injunction 148. C.J.S. Injunctions §§ 168–174.]
interim bond. 1. A bond set by a police officer when a person is arrested for a minor offense, such as a misdemeanor, without a warrant. • 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.
judicial bond.A bond to indemnify an adverse party in a lawsuit against loss occasioned by delay or by deprivation of property resulting from the lawsuit. • 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.A bond intended to protect the assured from a loss arising from some event
specified in the bond.
license bond.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. [Cases: Licenses 26. C.J.S.
Licenses § 42.]
maintenance bond.A bond guaranteeing against construction defects for a period after the completion of the contracted-for work. [Cases: Principal and Surety 82; Public Contracts 45.
C.J.S. Principal and Surety §§ 72, 77, 111; Public Administrative Law and Procedure § 45.]
negotiable bond.A bond that can be transferred from the original holder to another. [Cases:
Bonds 74.]
official bond. 1. A bond given by a public officer requiring the faithful performance of the duties of office. 2. A bond filed by an executor, guardian, trustee, or other fiduciary. See fiduciary bond. [Cases: Officers and Public Employees 37. C.J.S. Officers and Public Employees §§
61–62.]
payment bond.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 materialman. [Cases: Principal and Surety 82; Public Contracts 46. C.J.S. Principal and Surety §§ 72, 77, 111; Public Administrative Law and Procedure §§ 46–50.]
“[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).
peace bond.A bond required by a court from a person who has breached or threatened to breach the peace. — Also termed bond to keep the peace. See BREACH OF THE PEACE. [Cases: Breach of The Peace 15.1, 22. C.J.S. Breach of the Peace §§ 14, 18, 21, 23–25; Domestic Abuse and Violence §§ 2–3.]
penal bond.A bond requiring the obligor to pay a specified sum as a penalty if the underlying
obligation is not performed. — Also termed penal bill; common-defeasance bond. [Cases: Bonds
1, 50. C.J.S. Bonds §§ 2–4, 7, 32, 34, 39.]
performance bond.See PERFORMANCE BOND.
permit bond.See license bond.
personal bond. 1. See bail bond; BAIL. 2. A written document in which an obligor formally recognizes an obligation to pay money or to do a specified act. 3.Scots law. A bond containing a promise without security.
probate bond.A bond, such as that filed by an executor, required by law to be given during a probate proceeding to ensure faithful performance by the person under bond. [Cases: Executors and Administrators 26. C.J.S. Executors and Administrators § 71.] redelivery bond.See replevin bond.
refunding bond.A bond given to assure an executor that a legatee will return an estate distribution should the remaining estate assets be insufficient to pay the other legacies. [Cases:
Executors and Administrators 299. C.J.S. Executors and Administrators § 541.]
registered bond.A governmental or corporate obligation to pay money, represented by a single certificate delivered to the creditor. • The obligation is registered in the holder’s name on the books of the debtor. [Cases: Corporations 471; Municipal Corporations 936. C.J.S.
Corporations § 667; Municipal Corporations § 1700.]
removal bond. 1. 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. [Cases: Removal of Cases 89. C.J.S. Removal of Causes § 168.]
replevin bond (ri-plev-in).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. • The bond protects the attaching officer and ensures the property’s safekeeping until the court decides whether it should be returned to the defendant. — Also termed replevy bond. See REPLEVIN. [Cases: Replevin 33. C.J.S. Replevin § 54.] 2. A bond given by a defendant in a replevin action to regain attached property pending the outcome of litigation. • The bond does not discharge the attachment lien. [Cases: Replevin 49. C.J.S. Replevin §§ 76–77.] — Also termed replevy bond; claim-property
bond; redelivery bond. Cf. forthcoming bond.
respondentia bond (re-spon-den-shee-<<schwa>> or ree-). A contract containing the pledge of a ship’s cargo; a mortgage of a ship’s cargo. Cf. bottomry bond. [Cases: Shipping 89–100.
C.J.S. Shipping §§ 223–231.]
“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. 1. A bond without a penalty. 2. A bond payable to a named obligee on demand
or on a certain date.
statutory bond.A bond that literally or substantially meets the requirements of a statute.
[Cases: Bonds 31, 50. C.J.S. Bonds §§ 21–23, 28, 32, 34, 39.]
straw bond.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.A bond given by a litigant who agrees to submit a lawsuit to arbitration and
to be bound by an arbitrator’s award. [Cases: Arbitration 14. C.J.S. Arbitration § 184.]
supersedeas bond (soo-p<<schwa>>r-see-dee-<<schwa>>s). 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 SUPERSEDE(2). Cf. appeal bond. [Cases: Appeal and Error 460; Execution 158(2); Supersedeas 5. C.J.S. Appeal and Error §§ 408–410, 418;
Executions §§ 155–156.] surety bond.See PERFORMANCE BOND.
ten-percent bond.A bail bond in the amount of 10% of the bond otherwise required for a defendant’s release. • This type of bond usu. allows a defendant to arrange a bond without the services of a bondsman or other surety.
unsecured bail bond.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. [Cases: Bail 40, 55. C.J.S. Bail; Release and Detention
Pending Proceedings§§ 8, 93–95.]
- A long-term, interest-bearing debt instrument issued by a corporation or governmental entity, usu. to provide for a particular financial need; esp., such an instrument in which the debt is secured by a lien on the issuer’s property. Cf. DEBENTURE.“Typically debt securities are notes, debentures, and bonds. Technically a ‘debenture’ is an unsecured corporate obligation while a ‘bond’ is secured by a lien or mortgage on corporate property. However, the word ‘bond’ is often used indiscriminately to cover both bonds and debentures …. A ‘bond’ is a long term debt security while a ‘note’ is usually a shorter term obligation. Bonds are historically bearer instruments,
negotiable by delivery, issued in multiples of $1,000 with interest payments represented by coupons that are periodically clipped and submitted for payment.” Robert W. Hamilton, The Law of Corporations in a Nutshell 128 (3d ed. 1991).
accrual bond.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-bond. adjustment bond.A bond issued when a corporation is reorganized. — Also termed
reorganization bond.
annuity bond.A bond that lacks a maturity date and that perpetually pays interest. — Also termed consol; perpetual bond; continued bond; irredeemable bond. [Cases: Annuities 1. C.J.S.
Annuities §§ 2–4, 6–9, 21.]
arbitrage bond.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. • Under the Internal Revenue Code, the tax-free aspect of municipal-bond income may be lost if the bonds are classified as arbitrage bonds. See ARBITRAGE. [Cases: Internal Revenue 3132.10. C.J.S. Internal Revenue
- § 94, 98.]
assessment bond.A municipal bond repaid from property assessment taxes. [Cases: Municipal
Corporations 950. C.J.S. Municipal Corporations §§ 1708–1709.] assumed bond.See guaranteed bond (1). baby bond.A bond usu. having a face value of $1,000 or less.
bearer bond.A bond payable to the person holding it. • The transfer of possession transfers the
bond’s ownership. Cf. registered bond. [Cases: Bonds 74, 86.]
bond and mortgage.A bond that is backed by a mortgage on realty. — Also termed mortgage
bond. Cf. DEBENTURE(3).
book-entry bond.A bond for which no written certificate is issued to reflect ownership. callable bond.See redeemable bond.
chattel-mortgage bond.A bond secured by a mortgage on personal property.
closed-end mortgage bond.A mortgage bond with provisions prohibiting the debtor from
issuing additional bonds against the bond’s collateral.
collateral trust bond. 1. A bond representing a debt secured by the deposit of another security with a trustee. — Also termed collateral trust certificate. 2. A long-term corporate bond that is secured by other companies’ mortgage bonds held by the corporation, which pledges and deposits the mortgage bonds in trust. • The interest on these collateral trust bonds is typically lower than that received on the bonds pledged; the surplus is used to form a sinking fund to redeem the collateral trust bonds. A holding company often issues these bonds by pledging the stock of a subsidiary.
commodity-backed bond.A bond with interest payments or principal repayment tied to the price of a specific commodity, such as gold. • This type of bond, which has a low interest rate but provides a hedge against inflation because the commodity price will usu. rise, is often issued by a firm with a stake in the commodity.
consolidated bond. 1. 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.
construction bond.A bond issued by a governmental entity for a building project. [Cases:
Municipal Corporations 911. C.J.S. Municipal Corporations § 1649.] continued bond.See annuity bond.
convertible bond.A bond that can be exchanged for stock shares in the corporation that issued
the bond. [Cases: Corporations 470. C.J.S. Corporations §§ 664–665.]
corporate bond. 1. An interest-bearing instrument containing a corporation’s promise to pay a fixed sum of money at some future time. • A corporate bond may be secured or unsecured. [Cases: Corporations 470. C.J.S. Corporations §§ 664–665.] 2. A bond issued by a corporation, usu. having a maturity of ten years or longer.
county bond.A county-issued bond paid through a levy on a special taxing district, whether or
not the district is coextensive with the county. [Cases: Counties 187. C.J.S. Counties § 226.]
coupon bond.A bond with attached interest coupons that the holder may present to receive
interest payments. See BOND COUPON.
cumulative income bond.See income bond.
cushion bond.A bond paying an uncommonly high interest rate. debenture bond.See DEBENTURE(3). deferred-interest bond.A bond whose interest payments are postponed for a time.
discount bond.A bond sold at its current market value, which is less than its face value. — Also termed non-interest-bearing bond.
divisional bond.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.A bond secured by tangible property, such as an airplane. • A trustee usu. holds title to the equipment, which is leased to the issuer. — Also termed equipment trust certificate.
first-mortgage bond.A long-term bond that has the first claim on specified assets. flat bond.A bond that trades without accrued interest.
floating-interest bond.A bond with an interest rate that moves up and down with changing
economic conditions.
flower bond.A Treasury bond redeemable before maturity if used to settle federal estate taxes. • Flower bonds were issued before April 1971 and reached final maturity in 1998. [Cases: Internal
Revenue 4830. C.J.S. Internal Revenue §§ 548–549, 727.]
foreign bond.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 U.S. dollars and issued in the United States.
full-faith-and-credit bond.See general-obligation bond.
general-mortgage bond.A corporate bond secured by a blanket mortgage on property. • The general-mortgage bond, however, is often less valuable because it is subordinate to prior mortgages. [Cases: Corporations 470. C.J.S. Corporations §§ 664–665.]
general-obligation bond.A municipal bond payable from general revenue rather than from a special fund. • Such a bond has no collateral to back it other than the issuer’s taxing power. — Often shortened to obligation bond. — Also termed full-faith-and-credit bond. [Cases: Municipal Corporations 953.]
“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. 1.Hist. A bond payable in gold coin or U.S. currency at the election of the bondholder. • This type of bond existed until 1933, when the U.S. monetary system abandoned the gold standard. 2. A commodity-backed bond that is secured by gold and issued by a gold-mining company.
government bond.See savings bond; government security under SECURITY(4).
guaranteed bond. 1. A bond issued by a corporation and guaranteed by a third party. • This type of bond is common among railroads. — Also termed endorsed bond; assumed bond; joint bond. 2. A bond issued by a subsidiary corporation whose parent corporation guarantees the principal and interest payments.
high-yield bond.A high-risk, high-yield subordinated bond issued by a company with a credit
rating below investment grade. — Also termed junk bond; high-yield debt obligation.
improvement bond.See revenue bond.
income bond.A corporate bond secured by the corporation’s net income, after the payment of interest on senior debt. • Sometimes this type of bond is a cumulative-income bond, in which case, if the income in any year is insufficient to pay the full interest, the deficit is carried forward as a lien on any future income. — Also termed cumulative income bond. [Cases: Corporations 470.
C.J.S. Corporations §§ 664–665.]
indeterminate bond.A callable bond with no set maturity date.
industrial-development bond. 1. A type of revenue bond in which interest and principal payments are backed by a corporation rather than a municipality. • 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. [Cases: Municipal Corporations 912. C.J.S. Municipal
Corporations § 1650.]
interchangeable bond.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.A bond paid in lieu of interest due on other bonds.
investment-grade bond.A bond with a rating of BBB or better by the leading bond rating
services. See INVESTMENT-GRADE RATING.
irredeemable bond.See annuity bond.
joint and several bond.A bond in which the principal and interest are guaranteed by two or
more obligors. [Cases: Bonds 51. C.J.S. Bonds §§ 40–43.]
joint bond.A bond signed by two or more obligors. • In contrast to a joint and several bond, all the obligors must be joined if an action is brought on the bond. [Cases: Bonds 51. C.J.S.
Bonds §§ 40–43.] junior bond.A bond subordinate in priority to another bond. junk bond.See high-yield bond.
leasehold-mortgage bond.A bond issued by a lessee and secured by the lessee’s leasehold interest.
Lloyd’s bond.Hist. English law. A corporate bond issued on work done or goods delivered. • 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. mortgage bond.A bond secured by the issuer’s real property. multimaturity bond.See put bond.
municipal bond.A bond issued by a nonfederal government or governmental unit, such as a state bond to finance local improvements. • The interest received from a municipal bond may be exempt from federal, state, and local taxes. — Often shortened (in plural) to municipals; munies. — Also termed municipal security. [Cases: Municipal Corporations 911. C.J.S. Municipal
Corporations § 1649.] noncallable bond.See noncallable security under SECURITY. non-interest-bearing bond.See discount bond.
nonstatutory bond.See voluntary bond. obligation bond.See general-obligation bond.
open-end mortgage bond.A mortgage bond that can be used as security for another bond issue.
optional bond.A bond that the holder may redeem before its maturity date if the issuer agrees. option tender bond.See put bond.
participating bond.A bond that entitles the holder to a share of corporate profits but does not
have a fixed interest rate. passive bond.A bond bearing no interest. See passive debt under DEBT. [Cases: Bonds 63.
C.J.S. Bonds § 52.] perpetual bond.See annuity bond.
post-obit bond.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. • Equity traditionally enforces such bonds only if the terms are just and reasonable. — Also termed post-obit agreement.
premium bond.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.
railroad-aid bond.A bond issued by a public body to fund railway construction. redeemable bond.A bond that the issuer may call for payment. — Also termed callable bond.
re-funding bond.A bond that retires an outstanding bond. [Cases: Municipal Corporations
- C.J.S. Municipal Corporations §§ 1651, 1653.]
registered bond.A bond that only the holder of record may redeem, enjoy benefits from, or
transfer to another. Cf. bearer bond. [Cases: Bonds 74, 86.] reorganization bond.See adjustment bond.
revenue bond.A government bond repayable from public funds. [Cases: Municipal
Corporations 950(15).]
savings bond.A nontransferable bond issued by the U.S. government. [Cases: United States
- C.J.S. United States §§ 164, 167.] school bond.A bond issued by a city or school district to fund school construction.
secured bond.A bond backed by some type of security. Cf. DEBENTURE(2). [Cases: Schools
- C.J.S. Schools and School Districts §§ 522–524, 527–529.] serial bond.A bond issued concurrently with other bonds having different maturity dates.
series bonds.A group of bonds issued under the authority of the same indenture, but offered
publicly at different times and with different maturity dates and interest rates.
single bond.See bill obligatory under BILL(7).
sinking-fund bond.A bond backed by a sinking fund for bond redemption. See sinking fund under FUND(1). [Cases: Municipal Corporations 951. C.J.S. Municipal Corporations §§
1704–1705.]
special-tax bond.A municipal bond secured by taxes levied for a specific governmental purpose, usu. improvements. — Also termed special-assessment bond. [Cases: Municipal
Corporations 950. C.J.S. Municipal Corporations §§ 1708–1709.] state bond.A bond issued by a state. [Cases: States 147.]
statutory bond.A bond given in accordance with a statute. [Cases: Bonds 31, 50. C.J.S.
Bonds §§ 21–23, 28, 32, 34, 39.] subordinated bond.See junior bond.
tax-exempt bond.A bond that pays tax-free interest. [Cases: Internal Revenue 3132.10;
Taxation 992. C.J.S. Internal Revenue §§ 94, 98; Taxation § 1723.] term bond.A bond that matures concurrently with other bonds in that issue.
Treasury bond.See TREASURY BOND. unsecured bond.See DEBENTURE(3).
voluntary bond.A bond not required by statute but given anyway. — Also termed
nonstatutory bond.
Z-bond. See accrual bond.
zero-coupon bond.A bond paying no interest. • 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.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 off-site workers>.[Blacks Law 8th]