Straw Bond Law and Legal Definition
Straw bond refers to a bond that carries either a fictious name or the name of a person who is unable to pay the sum guaranteed. Generally, a straw bond is considered a worthless or inadequate bond. Straw bond is also known as bail bond. The term straw bond is not usually understood as referring to the covenants of the bond or whether those covenants are legally enforceable. This term is usually accepted as referring to the financial standing of the man who makes the bond.
The following is a case law defining straw bond :A straw bond is a real bond given by a person who is not, at the time, considered financially responsible. [Aronson v. Heymann, 56 Pa. Super. 501 (Pa. Super. Ct. 1914)].