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.]

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词条贡献者

双语律师李明，国际知名法学院法律专业，擅长翻译各类与政府监管相关的法律文件。