A penal bond is a written instrument executed between an obligor and an obligee designed to secure the performance of a legal obligation through the in terrorem effect of the threat of a penalty for nonperformance. == Types of bonds == At its simplest, a bond need only state who is to be paid, what sum, when, and where (for example: "'Know all men etc.
A penal bond is a written instrument executed between an obligor and an obligee designed to secure the performance of a legal obligation through the in terrorem effect of the threat of a penalty for nonperformance. == Types of bonds == At its simplest, a bond need only state who is to be paid, what sum, when, and where (for example: "'Know all men etc.
Source: Wikipedia "Penal bond" · CC BY-SA 4.0
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