Bond Issue in United States

Practical Information

Note: Some of this information was last updated in 1982

A method of raising funds through issuance of a large number of similar bonds, all of which are covered by a trust indenture or deed of trust (in U.S. law) that sets forth the obligations of the borrower, the rights of the bondholders, and the duties of a bank or trust company designated as trustee for the bondholders. The borrower may be an individual, but generally bonds are issued by a corporation (in U.S. law) (see corporate mortgage bond (in U.S. law)). Each bond (in U.S. law) represents the corporation’s written promise, under seal (in U.S. law) to pay a specified sum of money at a fixed time in the future, usually more than ten years after the promise is made, with interest at a fixed rate payable at specified interest dates.

(Revised by Ann De Vries)

What is Bond Issue?

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