obligation bond

obligation bond definition - business

obligation bond

A debt obligation for the purchase of real estate that is for an amount greater than the money that is loaned. The excess obligation creates a personal liability of the borrower for charges such as insurance premiums, property taxes, and unpaid interest.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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