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.]
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.]