Bonded Debt Law and Legal Definition

Bonded debt is an indebtedness secured by a bond issue. It is a written obligation contracted for corporate purpose pursuant to law and to be paid out of taxes to be levied upon all property within the corporate boundaries. [Bolton v. Wharton, 163 S.C. 242 (S.C. 1931)]. Such a debt must be a primary obligation of the political subdivision involved and must be secured primarily by a tax levied upon all the taxable property therein.