New Jersey Refunding Bond and Release is an instrument used by a business or individual to settle a debt in the state of New Jersey. This type of bond is secured by a pledge of money, property, or other security, and is issued by an approved surety company. The bond guarantees that the debt will be paid in full. In exchange for the bond, the creditor releases any and all claims against the debtor. The two types of New Jersey Refunding Bond and Release are the Surety Bond and the Financial Institution Bond. The Surety Bond is a guarantee made by a third party that the debt will be paid. The Financial Institution Bond is a loan from a financial institution to cover the debt. In both cases, the New Jersey Refunding Bond and Release must be approved by the court or other designated authority. This approval must be obtained before the bond is issued. The bond must include the full amount of the debt, as well as a guarantee that all claims against the debtor will be released. The bond must also be signed by all parties involved. Once the bond is approved, the debt is discharged and the creditor can no longer pursue the debtor for the debt.