Lloyd's Bonds

Lloyd's bonds. Instruments under the seal of a railway company, admitting the indebtedness of the company to a specified amount to the obligee, with a covenant to pay him such amount with interest on a future day. So called from the name of the counsel who originally settled such a bond. All such 'loan notes' issued otherwise than under the authority of some statute are invalid, and by the (English) Railway Regulation Act, 1844 (7 & 8 Vict. c. 85), s. 17, the railway company issuing them forfeits to the Crown a sum equal to the sum for which any note purports to be a security.