Virginia Bond Securing Payment of Annuity
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Description
A Bond in the context of law refers to a formal contract to repay at fixed intervals the amount borrowed with the interest. It is a deed that imposes an obligation upon the obligor, his/her heirs, or executors to pay a certain sum of money to another person on a day fixed in the deed. In finance, bond is a debt security in which the person issuing the bond owes a debt to the holder of such bond. Such debt must be discharged according to the term of the bond on the attainment of maturity. Therefore, a bond is like a loan in which the issuer is the borrower and the holder is the creditor. Bonds provide the borrower with external funds to finance long-term investments. In the case of government bonds, it provides funds to finance current expenditures.
