BONDS
In commercial law, a bond is a written promise to repay money borrowed and to pay interest on it. Bonds may be issued by governments, companies, or large institutions and are traded on financial markets. The term "bond" had its origins in the early days of stock trading when one security was traded for another. For example, the buyer of a bond received interest payments until the bond's maturity date, at which time he would receive his principal back.
A bond is a debt instrument used by businesses and governments to borrow money. The issuer of the bond, usually a bank or corporation, borrows money from investors who purchase the bonds. Bonds may be in the form of government bonds, corporate bonds, or asset-backed securities, but they are also used in other situations.
In criminal law, an obligation to pay the court if a defendant fails to meet the terms of conditional release from custody i.e Bail bond.
A bail bond is an insurance policy that guarantees that a defendant will appear in court as required by his or her bail conditions. The person who pays for a bail bond is called a principal (the person who signs the bond) and is responsible for making sure that the defendant shows up for all court appearances. If the defendant doesn't show up, then it is up to the accomplice to pay the entire amount of money set in the bail bond agreement.
In both legal uses, the term bond includes interest. A bond isn't just a legal agreement, or simply a guarantee of future performance. It's a solemn promise that requires you to take action in the event that things don't go as planned. It may sound like a big responsibility, but it is well worth it because of the protection a bond provides.
Post a Comment