Refunding Bond Law and Legal Definition

Refunding bond is given to an executor/trix or administrator/trix that a legatee will return an estate distribution if the remaining assets of the estate are insufficient to pay other legacies. The refunding bond may be in the value of the legatee's share of the estate. Purpose of a refunding bond is to refund to an executor/trix or administrator/trix out of a legatee’s share of the estate his/her ratable part of any unpaid debts that is owned by the testator or an intestate if there are no other assets to pay them.