What is legal bond?
What Is a Judicial Bond?
What Is a Surety Bond?
What Is an Appeal and a Bail Bond?
What is the difference between a judicial bond and a fiduciary bond?
What is a payment bond?
What happens if you don't appear in court?
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What is the document called that list the terms of a bond?
A bond purchase agreement (BPA) is a legally binding document between a bond issuer and an underwriter establishing the terms of a bond sale.
What is the name of the legal document underlying a bond issue?
An indenture is a legal and binding contract usually associated with bond agreements, real estate, or bankruptcy. An indenture provides detailed information on terms, clauses, and covenants.
What is an indenture document?
An indenture is a particular formal contract or deed made between two or more parties. Beginning in medieval England, an indenture can be defined as a specific agreement within a contract noted with a specific duration or significance.
What is a legal document called?
Definitions of legal document. (law) a document that states some contractual relationship or grants some right. synonyms: instrument, legal instrument, official document.
What is a bond agreement?
bond, In law, a formal written agreement by which a person undertakes to perform a certain act (e.g., appearing in court or fulfilling the obligations of a contract). Failure to perform the act obligates the person to pay a sum of money or to forfeit money on deposit.
What is the difference between debenture and indenture?
Like most bonds, debentures can pay coupon payments, and interest payments made at regular intervals. Like other types of bonds, debentures are written down in an indenture. An indenture is a legal contract between the bond issuer and the bondholders.
What is a bond trust indenture?
A trust indenture is an agreement in a bond contract made between a bond issuer and a trustee that represents the bondholder's interests by highlighting the rules and responsibilities that each party must adhere to.
What type of document is the indenture agreement?
What is an Indenture Agreement? An indenture agreement is a legally binding document or contract that establishes terms and conditions between two or more parties. Indenture agreements can govern a real estate transaction, a bankruptcy proceeding, or debt agreements.
What is the difference between an indenture and a conveyance?
Indenture of Conveyance is effectively just an old fashioned alternative name for a conveyance. A Transfer Deed is the document by which the sale of a parcel of registered land is effected.
What is another word for legal agreement?
The noun accord has the meaning "agreement" or "conformity." It often occurs in legal, business, or political contexts where it is synonymous with treaty and other similar words for formal agreement.
What is the top of a legal document called?
A cover page is the first insight into what the legal document is about. It will contain legal elements, such as parties and title and the date, branding elements like a firm's logo, office address, and a document ID. There is usually no page number on the cover page.
What are the different types of documentation?
The four kinds of documentation are:learning-oriented tutorials.goal-oriented how-to guides.understanding-oriented discussions.information-oriented reference material.
What is a bond indenture agreement?
A bond indenture is the contract associated with a bond. The terms of a bond indenture include a description of the bond features, restrictions placed on the issuer, and the actions that will be triggered if the issuer fails to make timely payments.
What is a bond certificate?
A bond certificate is a legal document describing the indebtedness of a borrower and the terms under which that indebtedness will be paid back to the investor. The entity that issues a bond certificate is referred to as the issuer.
What is the term for a legal document that indicates the name of the issuer the face value of the bond and the contractual rate of interest?
Bond certificate. A legal document that indicates the name of the issuer, the face value of the bonds, the contractual interest rate, and maturity date of the bonds. Bond indenture. A legal document that sets forth the terms of the bond issue.
What is the issue with mortgage bonds?
A disadvantage of mortgage bonds is that their yields tend to be lower than corporate bond yields because the securitization of mortgages makes such bonds safer investments. An advantage would that if a homeowner defaults on a mortgage, the bondholders have a claim on the value of the homeowner's property.
Bond Legal Definition: Everything You Need to Know - UpCounsel
Bond Legal Definition. The bond legal definition is, by law, a written agreement in which someone receives the bond (monetary payment) and promises to engage in a specific act, i.e., performing under a contract or appearing in court.
Bond Law and Legal Definition | USLegal, Inc.
Bond in the context of law refers to a formal contract to repay at fixed intervals the amount borrowed with the interest. It is a deed that imposes an obligation upon the obligor, his/her heirs, or executors to pay a certain sum of money to another person on a day fixed in the deed.
What is legal bond?
A legal bond is a written agreement where a person decides to perform a specific act, such as fulfill ing a contract's obligations or appearing in court.3 min read. 1.
What Is a Judicial Bond?
A judicial bond gets deposited by a litigant to compensate the opposite governmental or judicial body from any loss that comes from the legal proceeding. These bonds are often used when going into a civil court proceeding. The bonds make sure the person is protected from potential losses that come from the court's decision. Judicial bonds can be divided into plaintiff bonds and defendant bonds. Defendant bonds stop a plaintiff's action from trying to satisfy their claim. They often allow the defendant to have control over the property.
What Is a Surety Bond?
A surety bond is a three-party contract and is also known as a performance bond or a bid bond. This is where a party (or the surety, which is often an insurance company or bank) guarantees a contractor's customer (or obligee) that the conditions of the contract will be filled by the contractor (or obligor). If the obligor doesn't perform the contract terms, the customer will be paid a surety as compensation. A surety bond isn't the same as an insurance policy.
What Is an Appeal and a Bail Bond?
A bail bond is used by someone who's been accused to guarantee their appearance in court when they're called on. A professional bail bond agent or defendant executes a document that promises to give up a sum of money that will be enough to ensure the defendant returns to court to go to trial. If they don't appear in court, the court will keep the money that's secured by the bond.
What is the difference between a judicial bond and a fiduciary bond?
The main difference is a judicial bond will pay a sum of money that would normally be required in a court case, while a fiduciary bond promises honest and faithful performance of a duty.
What is a payment bond?
Payment bonds. Bid bonds make sure someone doesn't underbid a project, or if they do, that they'll still finish the project at the original price bid. Performance bonds make sure there is an accurate and timely performance of the contract according to the specifications.
What happens if you don't appear in court?
If they don't appear in court, the court will keep the money that's secured by the bond. Since most people can't pay their own bail, they'll need to get help from a bail agent or bail bondsman, who will charge a nonrefundable fee that's equal to about 10 to 20 percent of the bail amount.
What is the legal identity of a bond issuer?
The investor must understand who the issuer is. The issuer can be: A subsidiary of a parent legal entity; A holding company; or. A special purpose vehicle (SPV) with a separate legal entity is set up to issue bonds.
What is covered bond?
Covered bonds are securities issued by a bank or mortgage institution and collateralized against a pool of assets. Unlike asset-backed securities, covered bonds offer more protection to the bondholder since the pool of assets remains on the financial institution’s balance sheet.
What is bond indenture?
A bond indenture is a legal document that outlines all the parameters of the bond issue, such as the par amount, issuer, coupon rate, security pledge, and the rights of bondholders. When analyzing a bond, it is important to review the credit risk of the issuer – the entity legally obliged to repay the bondholders. The indenture will also describe the security ranking of the bonds, which can be secured or unsecured. Secured bonds grant bondholders a claim on a specific asset, while unsecured or debentures offer no collateral and are repaid after secured bonds.
What is holding funds in transit?
Holding funds in transit (until they are paid to the bondholder). Other covenants that may be outlined in the indenture include actions such as: Timely payment of interest/principal. Payment of taxes and other regulatory fees as may be required. Keeping acquired assets in good condition.
What is SPV bond?
A special purpose vehicle (SPV) with a separate legal entity is set up to issue bonds. Such bonds are secured by assets that have been hived off the entity’s sponsor (i.e., removed from the sponsor’s balance sheet). Thus, in the event of default, bondholders/trustees cannot go after the sponsor’s other assets.
What are collateral items?
Some of the items often used as collateral include physical equipment, mortgages, and stocks.
Who acts as a fiduciary for a bondholder?
For this reason, the bondholder may enlist the services of a trustee who acts in a fiduciary capacity for the bondholder. The trustee is usually a third party with trust powers, such as the trust department of a bank.
How long does a bond have to be fixed?
Have fixed maturity dates (such as 20 years) at which time the borrower promises to repay the bondholder in full.
Do all investments carry the same amount of risk?
All investments carry the same amount of risk.
What is legal bond?
A legal bond is a written agreement where a person decides to perform a specific act, such as fulfill ing a contract's obligations or appearing in court.3 min read. 1.
What Is a Judicial Bond?
A judicial bond gets deposited by a litigant to compensate the opposite governmental or judicial body from any loss that comes from the legal proceeding. These bonds are often used when going into a civil court proceeding. The bonds make sure the person is protected from potential losses that come from the court's decision. Judicial bonds can be divided into plaintiff bonds and defendant bonds. Defendant bonds stop a plaintiff's action from trying to satisfy their claim. They often allow the defendant to have control over the property.
What Is a Surety Bond?
A surety bond is a three-party contract and is also known as a performance bond or a bid bond. This is where a party (or the surety, which is often an insurance company or bank) guarantees a contractor's customer (or obligee) that the conditions of the contract will be filled by the contractor (or obligor). If the obligor doesn't perform the contract terms, the customer will be paid a surety as compensation. A surety bond isn't the same as an insurance policy.
What Is an Appeal and a Bail Bond?
A bail bond is used by someone who's been accused to guarantee their appearance in court when they're called on. A professional bail bond agent or defendant executes a document that promises to give up a sum of money that will be enough to ensure the defendant returns to court to go to trial. If they don't appear in court, the court will keep the money that's secured by the bond.
What is the difference between a judicial bond and a fiduciary bond?
The main difference is a judicial bond will pay a sum of money that would normally be required in a court case, while a fiduciary bond promises honest and faithful performance of a duty.
What is a payment bond?
Payment bonds. Bid bonds make sure someone doesn't underbid a project, or if they do, that they'll still finish the project at the original price bid. Performance bonds make sure there is an accurate and timely performance of the contract according to the specifications.
What happens if you don't appear in court?
If they don't appear in court, the court will keep the money that's secured by the bond. Since most people can't pay their own bail, they'll need to get help from a bail agent or bail bondsman, who will charge a nonrefundable fee that's equal to about 10 to 20 percent of the bail amount.
