Can bonds be terminated?

Asked by: Hope Boyer  |  Last update: February 17, 2026
Score: 4.5/5 (22 votes)

Yes, bonds can be terminated, either automatically upon fulfilling conditions (like a court case ending), by the obligee (entity requiring the bond) for cause (like project completion or violation), or by the surety company or principal (person/company bonded) through specific legal processes, though bond termination often involves fulfilling obligations, getting court/obligee permission, or surrendering the principal (in bail bonds).

How do you terminate a bond?

If specific action is necessary to terminate the surety bond, the defendant should motion the court directing the action required to terminate the bond. Upon ORDER from the court, the appropriate action will be taken. The release of a surety bond will only be granted in response to a motion or filing with the court.

How can your bond be revoked?

The court can revoke bail at any time if the defendant violates the conditions of their release. For example, if the defendant commits another crime or fails to appear in court, the judge may revoke bail and issue a bench warrant for their arrest.

Can we exit bonds before maturity?

"Early closure in bonds" means an investor can sell or exit a bond before its maturity, often facing penalties or receiving a lower interest payout than originally expected.

How do I get out of a bond contract?

Bail bonds are legally binding contracts, so there are only certain scenarios in which you can be released from your agreement. These include: If you have a legitimate reason why you believe the defendant will not follow through on their obligations. The defendant has put you in danger or engages in criminal activity.

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37 related questions found

Can a bond be canceled?

While bonds can be modified with relative ease, they cannot be simply canceled either by the surety or principal (judgement debtor or appellant).

What are 6 things that void a contract?

We'll cover these terms in more detail later.

  • Understanding Void Contracts. ...
  • Uncertainty or Ambiguity. ...
  • Lack of Legal Capacity. ...
  • Incomplete Terms. ...
  • Misrepresentation or Fraud. ...
  • Common Mistake. ...
  • Duress or Undue Influence. ...
  • Public Policy or Illegal Activity.

How much is a $100 bond worth after 30 years?

A $100 Series EE savings bond issued in October 1994 would be worth approximately $164.12 after 30 years, with $114.12 of that being interest earned, as these bonds stop earning interest at 30 years and mature at their final value. The exact value depends on the bond's type (Series EE is common) and its specific issue date, so using the TreasuryDirect Savings Bond Calculator is the best way to check your specific bond's value. 

Can bonds be withdrawn anytime?

Many listed bonds can be sold on the secondary market before maturity, subject to market demand and availability of buyers. Certain bonds, such as Section 54EC Capital Gains Bonds and some structured debentures, have a mandatory lock-in period and cannot be sold before maturity.

What does Warren Buffett say about bonds?

Warren Buffett favors short-term U.S. Treasury bills for Berkshire Hathaway's cash holdings, viewing them as safe, liquid assets, especially when interest rates are high, while famously recommending a simple 90% low-cost S&P 500 index fund and 10% short-term government bond allocation for individual investors seeking long-term growth with stability, using bonds as a low-risk parking spot. Berkshire holds massive amounts of T-bills (over $230B+), sometimes exceeding the Federal Reserve's holdings, allowing them to earn substantial income while waiting for better stock opportunities, reflecting his preference for capital preservation in uncertain markets. 

What causes a bond to be revoked?

Judges can revoke a bond if certain conditions are broken or new concerns arise. Whether missing a court date, violating release conditions, or getting re-arrested, each misstep could land someone back in custody.

How much is a $25,000 bail bond?

If bail is $25,000, you typically pay a non-refundable fee, usually 10% ($2,500), to a bail bond company to secure release, as they pay the full bail for you; however, rates vary by state and situation, potentially ranging from around $1,250 (2%) to $2,500 (10%), or more if you have bad credit, while paying the full $25,000 directly to the court releases you without needing a bond agent but requires full repayment. 

Can you pull out of a bond?

Yes, you can withdraw money from bonds, but the process and penalties depend on the bond type (Savings Bonds, Corporate Bonds, Treasury Bonds) and how long you've held them; for U.S. Savings Bonds, you must wait at least a year, and cashing before five years results in a penalty of the last three months' interest, while corporate and Treasury bonds can often be sold on a secondary market but may involve fees or price fluctuations. 

Can you end a bond early?

Normally, you can't withdraw money or close your Fixed Rate Savings Bond during its term.

What does "bond terminated" mean?

Revoking a bail bond means that the defendant has lost their right to bail. In other words, the bond is forfeit and the defendant must be returned to custody.

Who can revoke your bond?

Court Authority

Only the court can officially forfeit a bail bond. Still, the bail bondsman and co-signer may take actions, such as surrendering the defendant, that can help prevent forfeiture if done before deadlines outlined in Penal Code 1305. The judge can issue a bench warrant for your arrest in this situation.

Can you break a bond before maturity?

Yes, since these are listed on stock exchanges, you can sell them in the secondary market (subject to liquidity). Option to sell is also available via the platform, but buyer availability is not guaranteed.

What is the 5 withdrawal rule for bonds?

This is a rule in tax law which allows investors to withdraw up to 5% of their investment into a bond, each policy year, without incurring an immediate tax charge.

Can I cash out my bonds?

Yes, you can withdraw money from bonds, but the process and penalties depend on the bond type (Savings Bonds, Corporate Bonds, Treasury Bonds) and how long you've held them; for U.S. Savings Bonds, you must wait at least a year, and cashing before five years results in a penalty of the last three months' interest, while corporate and Treasury bonds can often be sold on a secondary market but may involve fees or price fluctuations. 

Why is my $100 savings bond only worth $50?

Your $100 savings bond is likely worth $50 because it's a paper Series EE bond purchased years ago for half its face value, meaning you paid $50 for a bond that would grow to $100 over time, but it hasn't earned enough interest yet, or you cashed it out too early (before 5 years), losing the last three months' interest. The key is the original purchase price (often $50 for $100 face value) versus its current value, which increases with interest, but early redemption or holding past final maturity (30 years) affects the total. 

Do bonds expire after 30 years?

Savings bonds earn interest until they reach "maturity," which is generally 20-30 years, depending on the type purchased. If a bond is held past its maturity, the federal government remains responsible for the debt.

Are bonds a good investment?

Yes, bonds are generally a good investment for portfolio stability, diversification, and predictable income, acting as a lower-risk complement to stocks, but they aren't risk-free due to interest rate changes, inflation, and potential issuer defaults, making their suitability dependent on your financial goals and risk tolerance. 

What mistake is likely to be voidable?

A voidable contract is legally valid but can be canceled by one party due to specific legal defects. Common reasons include misrepresentation, fraud, duress, undue influence, mental incompetence, or mutual mistake.

How to get out of a contract legally?

How can I get out of a contract?

  1. Negotiate a Change or Cancellation. ...
  2. Express Right to Terminate. ...
  3. Cooling-off or Cancellation Periods. ...
  4. Inability to Perform. ...
  5. Mutual Mistake. ...
  6. Breaching a Contract. ...
  7. Voiding Factors. ...
  8. Contact Cornerstone Law Firm for help.

What are four types of mistakes that can invalidate a contract?

Four types of mistakes that can invalidate a contract, making it void or voidable, include Mutual Mistake (both parties share the same fundamental error), Unilateral Mistake (one party is mistaken, and the other knows or should know), Common Mistake (a shared error about the existence or quality of the subject matter, often rendering the contract void), and mistakes involving Misrepresentation or Fraud, where one party is misled by false statements about essential facts, though technically not just a "mistake" but a vitiating factor often grouped with them.