Corporate Mortgage Bond

Corporate Mortgage Bond in United States

Practical Information

Note: Some of this information was last updated in 1982

A written promise to pay a specific sum of money at a fixed time in the future, usually more than ten years after the promise is made. It is generally one of a series of similar bonds, all of which usually carry int generally one of a series of similar bonds, all of which usually carry interest at a fixed rate, covered by a trust deed (in U.S. law) or mortgage (in U.S. law) in which the corporation’s property is mortgaged to the trustee for the benefit of the bondholders. These bonds are evidence of indebtedness on the part of the borrower to the lender; the lenders, however, may not enforce the mortgage covenants directly as in the case of individually owned mortgages, but must have the trustee act in their behalf to enforce mortgage covenants or to carry out foreclosure (in U.S. law). See also bond issue (in U.S. law); deed of trust (in U.S. law).

(Revised by Ann De Vries)

What is Corporate Mortgage Bond?

For a meaning of it, read Corporate Mortgage Bond in the Legal Dictionary here. Browse and search more U.S. and international free legal definitions and legal terms related to Corporate Mortgage Bond.


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