Endorsed Bond 
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order it here)                                

This term has two meanings:

1.  A bond endorsed by a person or corporation other than the maker whose direct obligation it
     is.  Endorsed bonds usually arise out of a consolidation in which the parent corporation
     endorses the bonds of its subsidiary.  In order to strengthen their market value, or as
     collateral for loans, the parent company may endorse them.  A guaranty is implied in an
     endorsed bond, the endorser becoming liable in case of nonpayment, just as in the case of
     an endorser of a note.  The terms of the guaranty are written upon the bonds themselves, or
     upon a separate document.  The underlying security is not changed by the endorsement.

2.  A bond with writing or signatures extraneous to the text written thereon.  By a rule of the
     New York Stock Exchange, a coupon bond bearing an endorsement of a definite name of a
     person, firm, occupation, association, etc., in conjunction with words of condition,
     qualification, direction, or restriction not properly pertaining thereto as a security, shall not
     be a delivery unless sold specifically as an endorsed bond.  This rule also applies to bonds
     with coupons bearing such endorsements.

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