Foreign and Government.—Coupon bonds of United States municipal and business corporations are there negotiable, as also are the coupons, which may be detached and sued on separately after the bond has been satisfied. By the English, as well as by the American law, such bonds are held to be analogous to promissory notes and negotiable in the same way ; a bon(' i fide holder for value thereof is unaffected by want of title in the vendor, and is presumed to act in good faith ; even gross negligence alone would not prove mala Ales. Such a bond cannot, at its inception, be made payable to some certain obligee or bearer like a bill or note ; but after it is complete it may be transferred by indorsement so as to become payable to bearer. The term bond is also applied to certain securities issued by foreign governments and commercial corporations ; these are either of a like nature to our own govern ment securities or, in the case of commercial bonds, to what in England are known as debentures. There are many classes of these bonds—payable to order, or to bearer ; redeemable at a fixed date, or by drawing, and so on. So also in England the Government have issued Exchequer bonds.
English—Official—Judicial.—The object of an official bond is to secure indemnity against the misuse of an official position. It is generally entered into by the intending officer, together with one or more sureties as may be required, all of which obligors would be jointly and severally liable for any misconduct of the officer provided for in the bond. There have now been established guarantee and trust companies which, in consideration of a premium, will enter into such a bond as surety, thus relieving the principal obligor from the necessity of asking the favour from a private friend. These bonds are generally of a continuing character, wherein they differ from those required in the course of judicial proceedings. The latter are more definite in their terms, conditions, and operation, and are usually made for the particular occasion. Thus, for example, an administrator is required by the Court to give a bond for his due administration of the estate about to be committed to his hands. The obligee in such a bond is the judge for the
time being of the Probate Division, and the obligor is joined by one or more surety or sureties, who must be responsible persons. One surety is sufficient where the estate does not exceed 250, and where a husband administers his wife's estate. Where a married woman is administratrix, her husband may be a surety for her. Occasionally, the sureties have to " justify "; that is to say, they each make an affidavit that they are severally solvent to the amount of half the penalty of the bond. The penalty is equal in amount to double the gross value of the personal property of the deceased, and the gross annual value of the real property. Where there is a difficulty in finding so few a number of sureties equal to the amount of the penalty, the Court may allow a greater number than two. The sureties cannot claim to be discharged from their bond, and others substituted for them. Should the administrator fail in the performance of his duty, the sureties will be liable, and the Court will assign the benefit of the bond to some party, in order that he may take legal proceedings on the Court's behalf.
Stamps.—There is a 5s. stamp payable on an administration bond in England or Ireland, or on a confirmation of testament in Scotland. But (1) a bond given by the widow, mother, ch?ld, father, brother, or sister of any common seaman, marine, or soldier, dying in the King's service ; and (2) a bond given by any person where the estate to be administered does not exceed £100 in value, do not require this stamp. An annuity bond securing payment for the term of life, or any other indefinite period, is liable to a stamp duty of 2s. 6d. for every £5, and also for any fractional part thereof, of the annuity or sum periodically payable. But where the annuity is for a definite and certain period, so that the total amount ultimately payable can be ascertained, the duty will be ad valorem the same as in the case of a bond for the total will be 2s. 6d. per cent.