LETTER OF INDEMNITY

A bank or insurance company promises by this written confirmation to act as a 3rd-party on behalf of the first party in a transaction or contract. This 3rd-party covers loss or damage to the 2nd-party in the agreement caused by the first party. Also known as indemnity bond.

Categories: L

COUNTERBOND

In old practice. A bond of indemnity. 2 Leon. 90.

Categories: C

CATASTROPHE BOND

A SECURITIZATION of a CATASTROPHIC HAZARD, such as an earthquake, hurricane, or windstorm. Repayment of PRINCIPAL and/or COUPONS is contingent on the occurrence of a defined lossmaking catastrophe; if a specified loss occurs, the issuer of the BOND (often an INSURER) may delay or cease making payments to investors, effectively transferring the RISK exposure to… Continue Reading CATASTROPHE BOND

Categories: C

NON DAMNIFICATUS

Lat. Not injured. This is a plea in an action of debt on an indemnity bond, or bond conditioned “to keep the plaintiff harmless and indemnified,” etc. It is in the nature of a plea of performance, being used where the defendant means to allege that the plaintiff has been kept harmless and indemnified, according… Continue Reading NON DAMNIFICATUS

Categories: N

DEED OF COVENANT

Covenants are sometimes entered into by a separate deed, for title, or for theindemnity of a purchaser or mortgagee, or for the production of title-deeds. A covenantwith a penalty is sometimes taken for the payment of a debt, instead of a bond with acondition, but the legal remedy is the same in either case.

Categories: D

COUNTER-SECURITY

A security given to one who has entered into a bond or become surety for another; a countervailing bond of indemnity.

Categories: C