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Joint Bond
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Joint bond, or a "joint-and-several bond" is a bond guaranteed by the issuer and another party. A joint bond is most often used by a subsidiary to gain access to a parent company guarantee on a bond. For example, if Tractorco's software subsidiary wanted to issue a bond but did not have enough revenue, they might issue a joint bond with Tractorco as the second guarantor. Any bond with more than one obligor is a joint bond. The "joint and several" aspect of any joint bond is that either or both obligors may be liable for the full amount of the issuer guarantee. Thus, a joint bond guarantor cannot sever the obligation without default. A joint bond, unlike a guaranteed bond, is fully secured by the parent or other obligors.
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