bond power

Popular Terms
Instrument used in the US to transfer ownership (title) of registered-bonds from the current owner to, for example, a lender (as a collateral). Bond power assigns the power of attorney to a named entity for effecting the change of ownership in the register of bondholders maintained by the bond issuer. In effect, it serves the same purpose as the assignment form printed on the back of a registered bond certificate, but is more convenient because it may be exchanged, mortgaged, or sold separately from the certificate it represents.

Email Print Embed