ASSUMED BONDS, bonds of a corporation which has been absorbed by another by means of merger, consolidation, purchase or other methods. In a merger, the corporation which retains its identity; in a consolidation, the newly formed corpora tion ; and in a sale, the purchasing company, assumes all the in debtedness of the merged, consolidated or purchased organiza tion, and hence becomes entirely responsible and liable for the payment of the bonds, which then take the name of assumed bonds. Bonds of one existing corporation which are guaranteed as to either interest or principal by the endorsement of another corporation are sometimes loosely called assumed bonds, but for such instruments it is better to reserve the name "guaranteed bonds."