Define: Joint Bond

UK Accounting Glossary

Definition: Joint Bond



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Full Definition of Joint Bond


Joint bond, or a “joint-and-several bond” is a bond guaranteed by the issuer and another party. A joint bond is most often used by a subsidiary to gain access to a parent company guarantee on a bond. For example, if Tractorco’s software subsidiary wanted to issue a bond but did not have enough revenue, they might issue a joint bond with Tractorco as the second guarantor. Any bond with more than one obligor is a joint bond. The “joint and several” aspect of any joint bond is that either or both obligors may be liable for the full amount of the issuer guarantee. Thus, a joint bond guarantor cannot sever the obligation without default. A joint bond, unlike a guaranteed bond, is fully secured by the parent or other obligors.


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Joint Bond. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/joint-bond/ (accessed: March 28, 2020).
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Joint Bond. PayrollHeaven.com. Retrieved March 28, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/joint-bond/

Definition Sources


Definitions for Joint Bond are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February 2020.