(b) repay the principal at maturity.
- REGISTERED BONDS
- are recorded on the books of the issuer by the trustee, and interest is paid by mail to the holder of record.
- BEARER BONDS
- are negotiable instruments that must be safeguarded by the owner to prevent loss. Interest is paid by coupon redemptions.
- BONDED DEBT
- that part of the entire indebtedness [of a corporation/state] that is represented by the bonds that it has issued. Alternatively, a “bonded debt” is a debt contracted under the obligation of a bond.
- BOND FOR DEED [TITLE]
- a document given [by the owner of real estate] to convey the property upon being paid money; an agreement to convey title in the future that – so long as it remains executory (it not yet performed) – allows title to remain vested in the original owners.
- BOND DISCOUNT
- a reduction [from the face amount] of a bond that occurs where bonds are sold on the market at a price that is below the face amount. Since bonds mature (ie, become due) years after issue, they are discounted to reflect present value.
- BOND FOR GENERAL PURPOSES
- government bonds that are a charge against the taxpayers. These types of bonds are distinguished from bonds for improvements – the cost of which is charged to the property that has been specially benefited.
- BOND ISSUE
- the offering of bonds for sale [to investors]
- BOND PREMIUM
- the amount that the purchaser pays in buying a bond that exceeds the face value of the bond.
- BOND YIELD
- see yield
- PERFORMANCE BOND
- a contractor’s bond, guaranteeing that the contractor will perform the contract and providing that – in the event of a default – the surety may complete the contract (or pay damages up to the bond limit)
- SERIAL [SERIES] BONDS
- bonds issued in a series by a public entity that are payable at different times.
- SURETY BOND
- a bond issued by one party (the surety) guaranteeing that he/she will perform certain acts promised by another (or pay a stipulated sum – up to the bond limit – in lieu of performance) should the principal fail to perform. In a criminal case, the surety bond assures the appearance of the defendant (or the repayment of bail forfeited upon the defendant’s failure to appear in court).
