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Simple English definitions for legal terms
bond creditor
Read a random definition: contingent fund
A quick definition of bond creditor:
A bond creditor is someone who has loaned money to another person or entity and has secured the loan with a bond. A creditor is someone who is owed money by another person or entity. This can be because they have given credit for money or goods, or because they have a claim that is capable of adjustment and liquidation. In simple terms, a bond creditor is someone who has loaned money and has a special type of security for the loan.A more thorough explanation:
A bond creditor is a person or entity who is owed a debt that is secured by a bond. A creditor is someone who is owed money or goods by another person or entity.
For example, if a company issues bonds to raise money, the people who buy those bonds become bond creditors. They are owed the money that they paid for the bonds, plus interest, and their debt is secured by the bond. If the company defaults on the bond, the bond creditor has the right to take legal action to recover their money.
Another example of a bond creditor is a government agency that issues bonds to fund public projects. The people who buy those bonds become bond creditors and are owed the money they paid for the bonds, plus interest. Their debt is secured by the bond, which means that if the government defaults on the bond, the bond creditor has the right to take legal action to recover their money.