Legal Definition of Bond: (a) A fiduciary bond is similar to an insurance policy because it represents an arrangement where one party (the surety) agrees, for a fee, to pay money or perform an obligation in the event the fiduciary (trustee, conservator, executor) fails to properly perform its duties. (b) An investment bond is a promise by the issuing company to repay a loan/investment at the end of a term, plus interest | Looking for information on bonds? Learn about the legal definition of bonds, including fiduciary bonds that protect beneficiaries and investment bonds that raise capital. Understand your financial obligations and make informed decisions as a business owner. Check it out now!