Bond violation

Bond violation,

Definition of Bond violation:

  1. Obligors action or failure to act that triggers a bond action.

  2. A bond violation is a breach of the terms of the covenants of a bond. A bond covenant is a legally binding term of the agreement between a bond issuer and a bondholder. Bond covenants are designed to protect the interests of both parties. The inclusion of the covenant is in the bond's indenture, which is the binding agreement, contract or document between two or more parties.

  3. In a non-financial sense, a bond violation also means a person has broken the conditions of their bail bond.

Meaning of Bond violation & Bond violation Definition