Bond Insurer
A company that issues the bond insurance policy for a bond issue.
bond-basics
Bond Insurance (Policy)
A financial Guaranty insurance policy provided by a Bond Insurer which pledges to make scheduled payments of Interest and Principal of a Bond Issue in the event the Issuer is unable to make those payments on time. The Bond Insurer is typically given rights under the bond documents and will direct remedies on Default.
See Also
Guaranty
A third party’s promise to pay the debt service on the bonds or perform some other obligation, which is the primary obligation of another party.
Default
Breach of a covenant, promise or duty imposed by the bond, bond resolution/ordinance, an indenture or other financing document.
Start with the Bond Basics
Hundreds of Terms and Concepts
Minimum Denomination
The lowest denomination of bond that can be purchased as authorized by the bond documents.